TORONTO — Bank of Nova Scotia, one of Canada’s largest banks, took issue on Friday with Standard & Poor’s decision to cut its debt ratings, saying its international reach helps cushion it from a slowdown in Canadian lending.
S&P downgraded credit ratings on six Canadian financial institutions late on Thursday, a move that could raise their borrowing costs and crimp profit margins on the loans they make.
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Standard & Poor’s has cut its outlook to “negative” from “stable” on seven major Canadian financial institutions including Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia, attributing the change to soaring consumer debt levels and the increasingly fragile global economy.
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In addition to Scotiabank, Canada’s No. 3 lender, the credit rating agency lowered ratings on Caisse Centrale Desjardins, a Quebec-based federation of credit unions. Also cut were…
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