Predictable and well-balanced institutional framework. Wealthy and diversified economy with strong education and health sectors. Positive financial management. Large portfolio of sellable assets held by the city. Limited contingent liabilities. High tax-supported debt burden. Large share of unfunded liabilities. Limited tax and expenditure flexibility. The rating on Lausanne reflects our view of the "predictable and well-balanced" institutional framework for municipalities located in the Canton of Vaud (AA+/Positive/--), including Lausanne. The rating also factors in Lausanne's wealthy and diversified economy, the city's "positive" financial management, its large portfolio of sellable assets, and its limited contingent liabilities. We consider that Lausanne's high tax-supported debt burden and its limited tax and expenditure flexibility constrain the ratings. The city's large, unfunded pension liabilities accentuate
