Strong regional position; Successfully implemented strategy; Improved asset quality, due to reduced scope of activities and enhanced risk management; and Capitalization expected to remain strong despite buybacks of bearer participation certificates. Limited growth potential in the Canton of Vaud, albeit mitigated by diversified business profile; Exposure to local small and midsize enterprises and real estate cycles. The ratings on Banque Cantonale Vaudoise (BCV) reflect the bank's stand-alone creditworthiness, and factor in Standard&Poor's Ratings Services' opinion that the enhancement in the bank's financials will prove to be sustainable, thanks to a well-implemented strategy. Offsetting factors include the bank's limited growth potential in its home region, the Canton of Vaud (A/Watch Pos/--), and concentration on the real estate sector and
