The ratings on Laurentian Bank of Canada reflect the bank's sizable presence in the Quebec market (50% of loan portfolio); its conservative loan book (residential mortgages: 50%, personal loans: 25%); and its stable deposit base, which is primarily made up of retail deposits. Loan quality has been stable, reflecting economic conditions in the Canadian market. These credit strengths are offset by Laurentian Bank's smaller and less diversified franchise, weaker balance sheet, and financial performance as compared with its major Canadian peers. While the bank's financial leverage has increased following its purchase of 43 branches from the Bank of Nova Scotia in November 2000, Sun Life Trust Co. in March 2000, and Tasse & Associes in February 2000, these acquisitions are
