On Sept. 29, 2004, Standard & Poor's Ratings Services revised its outlook on Laurentian Bank of Canada (Laurentian Bank) to negative from stable reflecting continued pressure on the bank's core operating earnings due to its restructuring plans, the heightened level of competition within the consumer lending sector, the effect of margin compression on the retail book, and the reduced demand for commercial loans. The bank's ratings, including its 'BBB+' long-term counterparty credit rating, have been affirmed. See ratings list below. Despite the low interest-rate environment, which has been fueling demand for retail loans, Laurentian Bank's loan growth has been lagging that of its competitors. Competition within this sector has intensified as the major Canadian banks have been reallocating capital from
