Strong market position and franchise in the Canton of Vaud Improved asset quality thanks to enhanced credit risk management Strong capitalization Limited growth potential in its home market, mitigated by a diversified business profile Exposure to local SMEs and regional real estate Trading risk appetite, though declining, that renders revenues sensitive to adverse market conditions The ratings on Banque Cantonale Vaudoise (BCV) factor in uplift of one notch above its stand-alone creditworthiness for implicit support from its main shareholder, the Canton of Vaud (AA-/Stable/--), despite the absence of a full statutory guarantee. The ratings are supported by Standard&Poor's Ratings Services' opinion that the bank's restored financials are sustainable, but that credit strength is mitigated by BCV's limited growth
