** Canadian lender Scotiabank's BNS.TO shares fall as much as 2.1%; last down 1.1% to C$67.58

** BofA Global Research downgrades company's shares to "neutral" from "buy" given worsening economic outlook and the bank's exposure to Mexico

** BofA Economics earlier this month downgraded the outlook for Mexico's economy, noting the country is "likely in a technical recession"

** Brokerage's meetings with "Big Six" banks' management teams last week indicated stalled customer activity and expectations for higher rainy-day funds

** BofA believes a truce on U.S. tariffs could jumpstart customer activity into late 2025 and into 2026

** 4 of 15 brokerages rate the stock "buy" or higher, 9 "hold" and 2 "sell"; median PT C$79, according to data compiled by LSEG

** As of last close, Scotiabank's shares down 11.4% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))