The current ratings on Banque Cantonale Vaudoise (BCV) reflect Standard&Poor's expectation that the bank's operating profitability will gradually improve following the weaker performance in 2001, which was exacerbated by a challenging operating environment. The ratings on BCV also reflect Standard&Poor's belief that the bank's asset quality will be markedly improved subsequent to the accelerated provisioning effort undertaken at year-end 2001. As this effort is expected to substantially reduce the weight that provision charges have had on net income levels during the past several years, the bank's bottom-line profitability should also improve. Operating revenues, in contrast, have weakened in the past year, mainly due to more volatile trading activities, and the effects of market conditions on transaction-driven
