Schwyzer Kantonalbank (SZKB) continues to post a solid financial position, underpinned by its strong capitalization, and its low-risk collateralized lending profile. However, in our view, the bank faces an increasing gap in terms of strategic execution and digital business development compared with peers, making it more vulnerable to changes in customer preferences and competitive pressure. This will result in subdued profitability, which is below the Swiss average. We affirmed our'AA+/A-1+'long- and short-term issuer credit ratings on Schwyzer Kantonalbank, because we base our ratings predominantly on our expectation of an extremely high likelihood of extraordinary support from the Canton of Schwyz. The stable outlook reflects SZKB's importance to the canton and that the canton's continued strong fiscal performance may
