The ratings on Laurentian Bank of Canada reflect its market position as the third largest banking organization in Quebec; its focus on a low risk residential mortgage book, which offsets the risk of other personal and commercial loans; and its stable deposit base, which is primarily made up of customer deposits. These credit strengths are offset by Laurentian Bank's smaller and less diversified franchise, and weaker balance sheet and financial performance as compared with its major Canadian peers. Overall, Laurentian Bank's credit quality remains in good shape relative to its peer group due to its strong residential mortgage portfolio. Commercial and personal loans have experienced a more significant spike in impaired loans in the last few quarters, reflecting economic conditions
