The ratings on The Bank of Nova Scotia (Scotiabank) reflect its market position as one of five dominant universal banks in Canada, its well-established international growth platform, and a track record of generating strong and consistent earnings performance coupled with a solid capital base. Furthermore, Scotiabank is well diversified by customer, product, and geography. The increased risk associated with Scotiabank's growing investments in international banking subsidiaries in developing and emerging markets and its relatively higher susceptibility to adverse global economic developments somewhat offset these strengths. In addition, the negative effect of currency translation on its increasing foreign earnings has curbed its bottom line profitability and capital, while the bank's wealth management business continues to lag those of its peer group,
