City of Lausanne

Strong management practices and a supportive institutional framework will help the City of Lausanne weather the COVID-19 shock. S&P Global Ratings expects Lausanne's diversified economy will bounce back in 2021, once pandemic-induced restrictions abate. The city's strong management practices will limit the pandemic's long-term effects on its finances. Lausanne also benefits from a well-balanced relationship with the Canton of Vaud. Recovering tax revenue and an ability to keep spending under control will help Lausanne mitigate COVID-19-related budgetary shortfalls. Additional expenditure and dipping revenue will hurt Lausanne's budgetary performance as it combats the economic effects of COVID-19 in 2020 and 2021. The city's ability to implement cost-saving measures and rebounding tax receipts will allow it to post gradually healthier operating surpluses

...Credit context and assumptions Base-case expectations Strong management practices and a supportive institutional framework will help the City of Lausanne weather the COVID-19 shock. + S&P Global Ratings expects Lausanne's diversified economy will bounce back in 2021, once pandemic-induced restrictions abate. + The city's strong management practices will limit the pandemic's long-term effects on its finances. + Lausanne also benefits from a well-balanced relationship with the Canton of Vaud. Recovering tax revenue and an ability to keep spending under control will help Lausanne mitigate COVID-19-related budgetary shortfalls. + Additional expenditure and dipping revenue will hurt Lausanne's budgetary performance as it combats the economic effects of COVID-19 in 2020 and 2021. + The city's ability to implement cost-saving measures and rebounding tax receipts will allow it to post gradually healthier operating surpluses after 2021. + These surpluses will help fund Lausanne's sizeable capital...

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