This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations Basel-City benefits from institutional and economic strengths that provide stability and predictability for its finances. Operating surpluses of 9.6% in 2026 on the back of exceptionally strong corporate taxes receipts should normalize to an average of 5.7% through 2028 on slower growth and rising operating costs. Large investment programs in affordable housing, green infrastructure, and healthcare keep capital expenditure high. Investments and growing borrowing by canton-owned entities will see tax-supported debt rise to 68% of consolidated operating revenue by 2028. Highly productive sectors and strong autonomy over tax rates provide significant fiscal flexibility to raise revenue if needed. The canton is well-positioned to absorb sector-specific
