The ratings on the City of Lausanne, located in the Swiss Canton of Vaud (A/Stable/--) 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 ratings are constrained by Lausanne's weakening budgetary performance, an increasing debt burden, expenditure pressure from the canton, and decreasing coverage ratios in its pension fund CPCL. The ratings are supported by: The city's strong service-oriented economy and high wealth levels. The local economy is diversified and relies on 7,500-8,000 mostly small and midsize enterprises. Lausanne hosts a substantial number of international companies; Good liquidity based on sophisticated liquidity planning and adequate access to short-term liquidity from banks, insurance companies, and cash exchange
