Fitch Ratings has affirmed its ratings on the Bank of Nova Scotia.

“Scotia’s ratings continue to reflect its strong franchise, solid profitability, sound asset quality and comfortable capital level,” the rating agency said.

“Scotia’s three business segments, domestic banking, international banking, and Scotia capital, continued to post favorable results in fiscal 2006 and first quarter 2007,” Fitch noted. “Scotia’s gross impaired loans are at modest levels and its capital ratios compare well globally.”

The rating outlook is stable, given expectations for solid financial performance, Fitch concluded.