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. The ratings also reflect Laurentian Bank's geographic concentration in the province of Quebec, its small market share position vis-à-vis its peers, its lack of product diversification, and its comparatively high exposure to 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. During that time, current management has refocused the bank's resources and efforts on its core operating
