The ratings on Montreal, Que.ûbased Laurentian Bank of Canada reflect Standard & Poor's concerns over continued weak earnings performance before special gains, and pressure on market share position in Quebec. Capital, when Standard & Poor's adjusts for the pension and post-retirement benefit liabilities shortfall, is below average. The bank has taken several positive initiatives to improve earnings power, such as refocusing on core Quebec markets, and rectifying the interest rate sensitivity position. These have benefited earnings in the recent quarter. Nevertheless, operating performance is not expected to return to historical levels and the full benefits from the repositioning might take time to materialize. The frequent changes in Laurentian Bank's business strategy in past years would suggest that the bank has
