Close ties with the Swiss Canton of Glarus, facilitated by its majority ownership of the bank and its statutory guarantee Very strong capitalization Sound retail banking franchise in the small canton and a loan book dominated by well-collateralized residential mortgages A less stable customer base and weaker cost efficiency than most rated cantonal peers Stronger reliance on wholesale funding activities than the rated cantonal peer group Concentration risk because of a focus on residential mortgage lending in Glarus and neighboring economic area The stable outlook on Glarner Kantonalbank (GLKB) reflects S&P Global Ratings' view that GLKB would receive extraordinary support from its majority owner, Canton of Glarus, if needed. Consequently, the likelihood of a downgrade is remote over the next
