The ratings on Montreal-based National Bank of Canada reflect Standard&Poor's Ratings Services' assessment of the bank's conservative credit risk profile, lack of exposure to high-risk U.S. retail lending, strong presence in midmarket commercial and retail lending in Quebec, good core profitability, strong liquidity, and conservative capital adequacy. The ratings also reflects what Standard&Poor's views as the bank's geographical concentration of loans and deposits in Quebec, competitive challenges expanding outside Quebec, and the higher proportion of revenues tied to capital markets activities (especially trading related) compared with that of its peers. National Bank's credit profile remains relatively stable and supported by what we consider its good risk management culture and fairly conservative retail and commercial and industrial
