Leading franchise in home canton. Sound risk and financial profile, underpinned by very strong capitalization, prudent risk management, and sustained profitability. Close ties with the financially strong Canton of Schwyz, facilitated by full ownership and a statutory guarantee. Concentration risk from limited geographic exposure and focus on residential mortgage lending. Limited earnings diversity with strong reliance on net interest income. Recent weakening of the home canton's budgetary performance. Standard&Poor's Rating Services' negative outlook on Swiss bank Schwyzer Kantonalbank (SZKB) reflects that on the Canton of Schwyz (AAA/Negative/A-1+). A downgrade of Schwyz would trigger a negative rating action on SZKB. Under our government-related entity (GRE) criteria, with all other factors remaining unchanged, a one-notch downgrade of the canton would
