THE BANK OF NOVA SCOTIA DBRS assigned the rating equal to the Bank's Intrinsic Assessment of AA (low) less four rating notches, which is consistent with DBRS Morningstar's standard notching for capital instruments with contingent risks and its ratings for the Bank's other NVCC Additional Tier 1 (AT1) Capital Notes. This is one notch below the rating of Scotiabank's NVCC Subordinated Debt.
DBRS Morningstar notes that the Capital Notes were granted Tier 1 capital treatment by the Office of the Superintendent
RATING DRIVERS
DBRS Morningstar views Scotiabank as being well placed in its current rating category. Over the longer term, the Bank's ratings would be upgraded if Scotiabank continues to build the depth and scale of its franchise, resulting in a sustained improvement in financial performance, without substantially increasing its risk appetite. Conversely, the ratings would be downgraded if there were a sustained deterioration in earnings or asset quality, especially from deficiencies in risk management. Additionally, significant operational issues, particularly in the
ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
The Grid Summary Grades for Scotiabank are as follows: Franchise Strength - Very Strong/Strong; Earnings Power - Very Strong/Strong; Risk Profile - Strong; Funding & Liquidity - Strong; Capitalization - Very Strong/Strong.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is the Global Methodology for
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrsmorningstar.com
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
This rating is endorsed by
Each of the principal methodologies employed in the analysis addressed one or more particular risks or aspects of the rating and were factored into the rating decision. Specifically, the 'Global Methodology for
The last rating action on this issuer took place on
Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are monitored.
For further information on DBRS Morningstar historical default rates published by the
Lead Analyst:
Rating Committee Chair:
Initial Rating Date:
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Ratings
Date Issued Debt Rated Action Rating Trend Attributes
i
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
07-Jun-21 NVCC Additional Tier 1 (AT1) Limited Recourse Capital Notes Provis.-New BBB (high) Stb CA
U
E
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