This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Net charge-offs remain low. Uncertainty remains around the success of the revamped strategy to bolster the franchise. Small capital markets operations help reduce potential volatility in operating performance. Exposure to riskier loan categories including Alt-A mortgages, commercial real estate (CRE) and construction, and equipment and inventory financing could lead to higher loan losses though they remain low. Strategic investments to bolster the franchise will keep expenses elevated. S&P Global Ratings expects management will remain focused on its multiyear strategy to strengthen the franchise. Specifically, Laurentian Bank of Canada (LBC) is focused on increasing
