FRANKFURT (S&P Global Ratings) June 12, 2020--S&P Global Ratings said today that the ratings on Glarner Kantonalbank (GLKB; AA/Stable/A-1+) could face a downgrade if a planned revision of Glarus' cantonal bank law triggers the removal of the explicit cantonal guarantee or the bank's privatization. We will reassess the ratings and GLKB's government-related entity (GRE) status once there are more details on planned amendments to the cantonal law and a likely outcome in the legislative process becomes known. We expect clarification on this during the second half of 2020. In our view, a change to the law could weaken GLKB's ties with the canton and lower the likelihood of timely and sufficient extraordinary support from Glarus in times of stress, which
