Basel-City (Canton of)

This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations --S&P Global Ratings expects Switzerland to post more benign GDP growth and inflation figures than most neighbors during current macroeconomic challenges. --Above-budget tax revenue and dividend income should enable Basel-City to post strong results again in 2022, with a small surplus after capital accounts. --The Canton of Basel-City (Basel-City) additionally benefits from the strong local presence of the pharmaceutical industry, which provides an extremely resilient tax base far in excess of the already very strong Swiss average. --The weaker general economic backdrop, elevated inflation, recently adopted tax cuts, and planned higher capex will start to weigh on results. --Basel-City?s political leadership has committed to prioritizing

...Basel-City will continue to benefit from an extraordinarily strong local economy. Macroeconomic headwinds appear less severe in Switzerland, while the strong pharmaceutical sector adds resilience, particularly to tax flows. The canton's financial management will nevertheless need to balance spending priorities with budgetary stability. Higher capex plans and tax cuts leave less room for maneuver and imply small deficits after capital accounts. An exceptional liquidity position and the moderate debt burden will continue to support our ratings on Basel-City. Despite having used available cash to repay maturing debt, we expect no structural changes to these key parameters....

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