Canton of Basel-Country

This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations Basel-Country benefits from a strong national and local economy, with an extremely dynamic and robust tax base. Budgetary performance will weaken compared to the very strong results in 2021-2022, but remain positive. Supported by recent strong operating results, Basel-Country plans to increase capital expenditure (capex), and implement initiatives focused on improving its competitiveness over the next few years. We anticipate fiscal outcomes will pick up again from 2024 but likely remain below the very strong performance seen in the past two years. S&P Global Ratings expects Basel-Country?s management will carefully balance long-term strategic initiatives with budgetary constraints. We expect the canton?s financial management will remain

...Basel-Country benefits from its diversified economy. The canton's strong industrial base is less affected by energy shortages and real losses in purchasing power than other industries, providing a stable economic environment. Industries such as logistics, wholesaling, business services, pharmaceuticals, and life sciences are most prevalent. The canton's unemployment rate remains very low at 1.7% as of September 2023. We believe Basel-Country's financial management will continue to demonstrate fiscal discipline. The projected softened budgetary results during 2023-2025 are mainly the result of macroeconomic developments, such as a lack of profit distribution from the Swiss National Bank (SNB), and elevated inflation, by Swiss standards, which should decline. However, we believe management will continue to act prudently should these challenges persist. Budgetary performance should remain solid and debt contained, while strong funding access underpins Basel-Country's liquidity. We expect the...

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