FRANKFURT (Standard&Poor's) Aug. 20, 2003--Standard&Poor's Ratings Services said today it lowered its long-term issuer credit and senior unsecured debt ratings to 'A+' from 'AA-'on the City of Lausanne, located in the Swiss Canton of Vaud (A/Stable/--). The outlook is stable. "The rating action reflects weakening budgetary performance, an increasing debt burden, expenditure pressure from the canton, and decreasing coverage ratios in its pension fund CPCL," said Standard&Poor's credit analyst Christian Esters. The ratings are underpinned by the city's strong service-oriented economy, good liquidity, and a certain degree of fiscal flexibility, although the latter is declining. The stable outlook reflects Standard&Poor's expectation that Lausanne will implement cost-saving and revenue-raising measures to improve its
