The Bank of Nova Scotia's US$25 Million Senior Resolution Notes Assigned 'A-' Rating

TORONTO (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings today said it assigned its 'A-' issue-level rating to The Bank of Nova Scotia's (BNS; A+/Stable/A-1) US$25 million callable step-up rate notes due June 30, 2020. We expect BNS' bail-in issue to meet regulatory requirements for inclusion in the bank's total loss-absorbing capacity (TLAC). Similarly, we expect such bail-in debt to meet our criteria for inclusion in our own measure of additional loss-absorbing capacity (ALAC), as we expect any future redemption would be, effectively, subject to regulatory approval. Our approach to rating BNS' senior resolution notes is consistent with our approach to rating senior subordinated notes being issued by peer banks in jurisdictions where we view resolution regimes as effective. This

...TORONTO (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings today said it assigned its 'A-' issue-level rating to The Bank of Nova Scotia's (BNS; A+/Stable/A-1) US$25 million callable step-up rate notes due June 30, 2020. We expect BNS' bail-in issue to meet regulatory requirements for inclusion in the bank's total loss-absorbing capacity (TLAC). Similarly, we expect such bail-in debt to meet our criteria for inclusion in our own measure of additional loss-absorbing capacity (ALAC), as we expect any future redemption would be, effectively, subject to regulatory approval. Our approach to rating BNS' senior resolution notes is consistent with our approach to rating senior subordinated notes being issued by peer banks in jurisdictions where we view resolution regimes as effective. This issuance comes after Canadian regulators finalized their approach to TLAC and convertible senior (bail-in) bank debt, applicable only to domestic systemically important banks (DSIBs) in April 2018, with conversion...

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