The ratings on Montreal, Que.-based National Bank of Canada (National Bank) reflect consistent growth in core operating performance and a lower credit risk profile, which are partially offset by limited geographical diversification and increased exposure to capital markets. The ratings also reflect the bank's market share in the Province of Quebec and overall performance compared with its Canadian peer group. National Bank has maintained a decent track record of risk-adjusted profitability, although below the levels of its more highly rated and larger Canadian peers. The strength of the bank's retail operations and focus on midmarket commercial lending in Quebec support the consistent financial performance. National Bank also benefits from sound credit quality, in part owing to the favorable economic trends
