Schwyzer Kantonalbank

Our stable outlook relates to the next two years. It mainly indicates that we expect an unchanged likelihood of support from Schwyz, in case of need. Our rating remains sensitive to our assessment of the cantonal owners' ability and willingness to support the bank. We anticipate that SZKB will maintain its sound financial profile, underpinned by its very strong capitalization and low risk profile over that period. A weakening in SZKB's role for or link with the canton, or detrimental changes in the statutory guarantee, could lead us to revise down our support assessment of the bank's status as a government-related entity (GRE). However, we do not envisage such a scenario in the next two years. Also, if this were

...S&P Global Ratings expects Schwyzer Kantonalbank (SZKB) to remain resilient thanks to its strong customer franchise and prudent lending policies. Resilient credit conditions in the bank's home canton--coupled with ongoing prudent risk management and cautious lending standards--safeguard SZKB's strong asset quality and support its business stability. About 75% of the bank's portfolio comprises well-collateralized residential mortgage lending. The remainder is concentrated on regional commercial real estate loans and financing local small and midsize enterprises (SMEs). We expect the bank to remain market leader in its canton, defending its superior franchise and longstanding customer relationships....

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