S&P has upgraded National Bank of Canada from A- to A because it has revised its view of the bank’s systemic importance, from “low” to “moderate”, in light of factors such as the bank’s role in the Quebec economy and the Canadian wholesale funding markets.

“Our revised view is based on the bank’s overall scale, its significant role in providing financial services to the Quebec economy, and on the general scale and interconnectedness of its capital markets activities in the Canadian financial system,” said Tom Connell, credit analyst at Standard & Poor’s.

National Bank has a unique position as a large Quebec-based bank, said the rating agency. Factors such as its share of commercial lending and retail financial services in Quebec, and the bank’s participation in the Canadian wholesale funding and securities markets also contribute to S&P’s view of the bank’s systemic importance.

National Bank is one of six banks that the Canadian industry regulator, the Office of the Superintendent of Financial Institutions (OFSI), in March identified as domestic systemically important banks (DSIBs).