On June 8, 2007, Standard&Poor's Ratings Services lowered its short- and long-term counterparty credit ratings on Bank of Montreal (BMO; TSX: BMO) and its related subsidiaries, to 'A+/A-1', from 'AA-/A-1+'. At the same time, Standard&Poor's removed the ratings from CreditWatch with negative implications, where they were placed May 17, 2007. The outlook is stable. The downgrade reflects the weaknesses Standard&Poor's found in the bank's risk management functions, the impact of competitive pressures on its domestic and U.S. personal and commercial (P&C) bank, the bank's lower level of risk adjusted earnings as compared with its North American peers, and smaller retail funding base that incrementally increased the bank's liquidity risk position. The risk management assessment
