Strong market position and franchise in the Canton of Vaud. Satisfactory risk management. Strong capitalization. Limited growth potential in the bank's home market. Exposure to regional real estate markets. Limited potential for efficiency gains. Standard&Poor's Ratings Services' long-term counterparty credit rating on Switzerland-based Banque Cantonale Vaudoise (BCV) factors in two notches of support above the bank's current stand-alone creditworthiness. This 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 methodology. It maintains a "very strong" link with the Canton of Vaud and plays a "very
