Strong market position and franchise in the Canton of Vaud Satisfactory 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 markets Limited potential for efficiency gains Our long-term counterparty credit rating on Banque Cantonale Vaudoise (BCV) factors in two notches of support above the bank's current stand-alone creditworthiness, which reflects implicit support from its main shareholder, the Swiss Canton of Vaud (AA/Stable/--), despite the absence of a full statutory guarantee. The second-largest cantonal bank in the Swiss Confederation (Switzerland; AAA/Stable/A-1+), BCV is a government-related entity (GRE) according to Standard&Poor's Ratings Services' methodology. It maintains strong links with the Canton of Vaud and
