...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 healthy asset quality indicators and a solid capital base. These strengths are counterbalanced by its still-low 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. On Aug. 30, 2007, the Bank of Nova Scotia singed an agreement with Banco del Desarrollo's controlling group to buy its 79% stake for $810 million. Banco del Desarrollo is Chile's seventh largest bank in terms of loans, with a special focus on low-income individuals and small and midsize companies. On Sept. 11, 2007, SSA acquired the rights to buy Banco del Desarrollo. Although we view this transaction as positive in the medium term, it does...
