TEXT-S&P revises Scotiabank Peru outlook to positive

Overview
-- On August 28, we revised the outlook on Peru to positive from stable.
-- We are revising our outlook to positive from stable and affirming the
'BBB' rating on Scotiabank Peru.
-- We expect the bank will maintain its strong market position in the
Peruvian financial system, healthy asset quality, and good profitability,
capitalization, and liquidity during the next two years.

Rating Action
On Aug. 29, 2012, Standard & Poor's Ratings Services revised its outlook on
Scotiabank Peru S.A.A. to positive from stable. At the same time, we affirmed
our 'BBB' rating on the bank.

Rationale
The rating action on the bank follows our outlook revision on Peru (please see
"Republic of Peru Outlook Revised To Positive; Ratings Affirmed," published on
Aug. 28, 2012 on RatingsDirect). All things being equal, we would raise the
ratings on the bank following an upgrade of the sovereign. In that
circumstance the rating on the bank would reflect its stand-alone credit
profile (SACP), which is currently at 'bbb+'.

Our ratings on Scotiabank Peru reflect its "strong" business position,
"adequate" capital and earnings, "adequate" risk position, "average" funding,
and "adequate" liquidity (as defined in our criteria).

Outlook
The positive outlook reflects our view that we would raise the ratings on
Scotiabank Peru following an upgrade of the sovereign and if the SACP of the
bank remains unchanged. We expect the bank will maintain its strong market
position in the Peruvian financial system, healthy asset quality, and good
profitability, capitalization, and liquidity during the next two years.

Ratings Score Snapshot
Issuer Credit Rating BBB/Positive/A-2

SACP bbb+
Anchor bbb
Business Position Strong (+1)
Capital and Earnings Adequate (0)
Risk Position Adequate (0)
Funding and Liquidity Average and Adequate (0)

Support 0
GRE Support 0
Group Support 1
Government Support 0

Additional Factors -2

Related Criteria And Research
-- Republic of Peru Outlook Revised To Positive; Ratings Affirmed, Aug.
28, 2012
-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
-- Banking Industry Country Risk Assessment Methodology And Assumptions,
Nov. 9, 2011

Ratings List
Ratings Affirmed; CreditWatch/Outlook Action
To From
Scotiabank Peru S.A.A.
Counterparty Credit Rating BBB/Positive/A-2 BBB/Stable/A-2