The ratings on Montreal-based Laurentian Bank of Canada reflect what Standard&Poor's Ratings Services views as the bank's improved and more sustainable core operating profitability, its stable asset quality, its good capital adequacy, and strong liquidity and funding position. These positive rating factors are somewhat offset in our opinion by Laurentian Bank's geographic concentration in the province of Quebec, its small market share, its lack of product diversification, and its comparatively high exposure to higher-risk personal lending. Much of Laurentian Bank's improved operating performance and financial strength in the past several years can be attributed to what we view as management's solid execution of its strategic plan. The current management leadership has refocused the bank's resources and efforts on
