...The ratings on Scotiabank Sudamericano (SSA) reflect its ownership by a committed parent, Bank of Nova Scotia, with full involvement in the management and operations of the bank since 2002. As a result of this involvement, SSA was brought in line with Scotiabank's operational standards in terms of risk management, credit control, funding, capital, human resources, and technology. The ratings also consider the challenges faced by the bank while pursuing the objective of resuming growth in the competitive Chilean financial system after having devoted significant efforts and time to the institution's turnaround process. With the shareholder's participation, SSA focused on improving the bank's asset quality before growing its asset books. The cleanup was mostly accomplished in fiscal 2000 and 2001, through both significant charge-offs and the sale of nonperforming assets and repossessed assets to its controlling shareholder. After this significant cleanup of the bank's loan portfolio, loan-loss...
