On Aug. 31, 2005, Standard & Poor's Ratings Services lowered the ratings on Laurentian Bank of Canada, including the long- and short-term counterparty credit ratings, which were lowered to 'BBB' from 'BBB+' and 'A-2' from 'A-1(Low)' on the Canadian CP scale. The outlook remains negative. The downgrade on Montreal, Que.ûbased Laurentian Bank reflects Standard & Poor's concerns over continued weak earnings performance before special gains, and pressure on market share position in Quebec. Capital, when Standard & Poor's adjusts for the pension and post-retirement benefit liabilities shortfall, is below average. The bank has taken several positive initiatives to improve earnings power, such as refocusing on core Quebec markets, and rectifying the interest rate sensitivity position. These have benefited earnings in
