...Standard & Poor's Ratings Services' ratings on Scotiabank Sudamericano (SSA) consider the ownership of The Bank of Nova Scotia and its full involvement in the management and operations of this institution since 1999. The ratings also reflect improved asset quality indicators and a solid capital base. These strengths are counterbalanced by its decreasing market share and the challenge of growing in key segments and improving profitability in the competitive Chilean financial system, after having devoted significant efforts to the bank's turnaround process. In the first stage, management focused on bringing the bank in line with the parent's operational standards, improving asset-liability management policies, strengthening credit procedures, and redefining operating areas. More recently, given the increased disintermediation process in the Chilean market and in the context of low interest margins in the corporate segment, SSA changed its strategy to that of a more retail-oriented bank. In...
