Very high likelihood of support from the Swiss Canton of Vaud in the event of stress. Good franchise in Vaud's resilient economy. More diverse business model than those of traditional Swiss cantonal banks. Strong liquidity, despite management's intention to partly fund growth by drawing on excess liquidity. High exposure to real estate market in the Canton of Vaud. Presence in high-risk, low-granularity trade finance business. Our outlook on Switzerland-based Banque Cantonale Vaudoise (BCV) is stable, reflecting our current view that the Swiss bank resolution regime is unlikely to prevent the government of the Swiss Canton of Vaud from providing timely support to the bank in the event of stress. Even if BCV's credit quality changed such that we revised the
