TORONTO (Standard&Poor's) Oct. 29, 2001--Standard&Poor's today placed its ratings on Bank of Montreal (BMO; AA-/Negative/A-1+) and its related entities on CreditWatch with negative implications (see list below). The CreditWatch placement reflects Standard&Poor's heightened concerns over the bank's credit quality and the outlook for profitability improvement in the medium term. On Oct. 26, 2001, the bank announced large increases to gross impaired loans and consequent revisions to expected provisions for the fiscal year ending Oct. 31, 2001. The rapidity of the loan quality deterioration presents concerns. In addition, the bank is writing down investments retained in high-yield securities in off-balance-sheet vehicles. Standard&Poor's is evaluating the deterioration in BMO's balance sheet relative to its
