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Canada's 'Bank of No Surprises' Turns Heads With Risk Surge

  • Scotiabank on rating review for consumer-credit growth
  • Debtholders discount lender's bonds for Latin America ties
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Scotiabank, the Bank of No Surprises, Surprises

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Bank of Nova Scotia may need a new nickname.

Dubbed by some investors "Bank of No Surprises" for its consistency and low-risk profile, Scotiabank -- Canada’s second-highest rated lender -- was put on review for downgrade on Nov. 2 by Moody’s Investors Service. The rater said the review was prompted by additional risk the bank has taken on by expanding in credit cards and auto loans, while pursuing more growth abroad.