Standard&Poor's today said that the expected net loss for fiscal year 2001 announced by Banque Cantonale Vaudoise (BCV; A-/Stable/A-2) on Dec. 18, 2001, will not affect its ratings on the bank. The bank is accelerating provisioning efforts in order to better cover residual credit risks. BCV will post Swiss franc (SFr) 1.125 billion (€764 million) in provision charges for fiscal year 2001, and will also transfer SFr685 million of its equity reserves to credit provisions. The estimated SFr500 million shortfall in capital that this transfer will produce is expected to be covered by a capital increase of SFr600 million. As the need to substantially improve asset quality has been cited as BCV's primary challenge, the bank's accelerated provisioning
