The ratings on The Bank of Nova Scotia (Scotiabank), including the 'A-1(High)' Canadian national scale CP and the 'P-1(Low)' Canadian national scale preferred share ratings, reflect its market position as one of five dominant universal banks in Canada, its broad business mix, geographic diversification, and the efficiency of its operations. The bank has a track record of strong and consistent earnings performance and has a very strong capital base even when risk-adjusted for higher risk activities. These strengths are offset somewhat by the higher risk profile of Scotiabank's corporate lending activities and investments in its international banking subsidiaries relative to its peers. Based on the past three years' results, about 46% of the bank's earnings were derived from its domestic
