Standard & Poor's maintains its rating of BCV

In a press release distributed yesterday afternoon, the agency Standard & Poor's announced that it would not change its rating of BCV on the basis of the information published by the Bank on 18 December. The rating remains thus unchanged at A- for long-term commitments and A-2 for short-term commitments. This news is very positive, as it should help dispel the uncertainties that have recently prevailed on the financial markets.

Press release provided by Standard & Poor's: "Standard & Poor's today said that the expected net loss for fiscal year 2001 announced by Banque Cantonale Vaudoise (BCV; A-/Stable/A-2) on Dec. 18, 2001, will not affect its ratings on the bank. The bank is accelerating provisioning efforts in order to better cover residual credit risks. BCV will post Swiss franc (Sfr) 1.125 billion (EUR 764 million) in provision charges for fiscal year 2001, and will also transfer SFr 685 million of its equity reserves to credit provisions. The estimated SFr 500 million shortfall in capital that this transfer will produce is expected to be covered by a capital increase of Sfr 600 million.

As the need to substantially improve asset quality has been cited as BCV's primary challenge, the bank's accelerated provisioning effort is considered to be positive. Standard & Poor's will closely monitor both the timeliness and the terms of the expected capital increase, the details of which are note fully known as of yet".

Lausanne, 21 december 2001