Following a review under Standard&Poor's revised bank criteria (published on Nov. 9, 2011), we have raised our long-term rating on Banque Cantonale Vaudoise (BCV) to 'AA' from 'AA-'. We have affirmed the short-term rating at 'A-1+'. Our ratings on BCV reflect its 'a' anchor as well as its adequate business position, strong capital and earnings, adequate risk position, average funding, and adequate liquidity. We continue to regard BCV as a government-related entity and we believe there is a "very high" likelihood of support from the Canton of Vaud in case the bank experiences stress, and for that reason the ratings incorporate two notches of uplift. The outlook is stable, reflecting our expectation that the bank's planned growth of
