Standard & Poor's revised its outlook on Laurentian Bank of Canada to negative from stable on May 1, 2002. The ratings on the bank, including the single-'A'-minus long-term counterparty credit rating, remain unchanged. The revision stems from the bank's announcement of an C$80 million provision for loan losses to be taken in the second quarter of 2002, which represents C$70 million more than initially projected and will eliminate almost two quarters of earnings. In addition to the higher provisions for loan losses significantly affecting earnings, the negative outlook also reflects the decline in core capital to below the Canadian peer group. This has the effect of reducing the bank's financial flexibility. The additional provisions for loan losses will be used
