Implicit ownership support from the Grand Duchy of Luxembourg. Leading domestic retail banking franchise. Very strong capitalization. The Luxembourg economy's vulnerability to Europe-wide measures regarding taxation and banking secrecy. Geographic concentration in a wealthy but small domestic market. Earnings' sensitivity to the low-interest-rate environment and credit-spread risks. Standard&Poor's Ratings Services' stable outlook on Banque et Caisse d'Epargne de l'Etat, Luxembourg (BCEE) mirrors the outlook on the Grand Duchy of Luxembourg (AAA/Stable/A-1+). This reflects BCEE's status as a government-related entity (GRE) under our criteria and our expectation that the bank will keep its integral link with and very important role for Luxembourg's government. The stable outlook also reflects our current view that the upcoming implementation of the EU Bank
