The ratings on Montreal, Que.-based National Bank of Canada (National Bank), including the P-2(High) Canadian national scale preferred share and A-1(Mid) Canadian national scale CP ratings, reflect the bank's market share in the Province of Quebec and overall performance as compared with both Canadian and global peers'. The strengths of the institution lie primarily in its retail operations with a focus on midmarket commercial lending. The diversification of loans and deposits in the Province of Ontario is targeted through various distribution channels with partners. The bank also has a niche presence in western Canada. National Bank's commercial lending operations are primarily directed at the Quebec market, where the strong economy has contributed to the favorable credit trends. The bank's favorable
