The ratings on The Bank of Nova Scotia (Scotiabank), including the 'A-1(Mid)' Canadian scale CP rating and the 'P-1(Low)' Canadian scale preferred share rating, reflect its market position as one of five dominant universal banks in Canada, its broad business mix, geographic diversification, and the efficiency of its operations. The bank has generated a track record of strong and consistent earnings performance and has a very strong capital base even when risk adjusted for higher risk activities. These strengths are somewhat offset by the higher risk profile of Scotiabank's corporate lending activities and investments in its international banking subsidiaries. Based on the past three years' results, excluding charges related to Argentina, about 46% of the bank's earnings were derived from
