Summary: Banque Cantonale Vaudoise

Very high likelihood of support from the Swiss Canton of Vaud in the event of stress. Good franchise in Vaud's resilient economy. More diverse business model than those of traditional Swiss cantonal banks. Strong liquidity. Persistent pressure on revenues from the low interest rate environment. High exposure to the real estate market in the Canton of Vaud. Presence in the high-risk, low-granularity trade finance business. Our outlook on Switzerland-based Banque Cantonale Vaudoise (BCV) is stable, reflecting our view of a very high likelihood of support for BCV from the Swiss Canton of Vaud in the event of stress. Even if BCV's credit quality changed to the extent that we revised the bank's stand-alone credit profile (SACP) downward or upward by

...Presence in the high-risk, low-granularity trade finance business. Outlook: Stable Our outlook on Switzerland-based Banque Cantonale Vaudoise (BCV) is stable, reflecting our view of a very high likelihood of support for BCV from the Swiss Canton of Vaud in the event of stress. Even if BCV's credit quality changed to the extent that we revised the bank's stand-alone credit profile (SACP) downward or upward by one notch, we would not revise our long-term rating on the bank, all else being equal. This is because, according to our criteria, and given our '###' rating on the Canton of Vaud, any one-notch revision of the SACP would be offset by an opposite change in the uplift we attribute for extraordinary government support. All else being equal, a two-notch change in BCV's SACP, upward or downward, would result in a one-notch change (in the same direction) of the issuer credit rating, but we do not consider this likely in the next two years....

Summary