High wealth levels; and Some degree of expenditure-cutting flexibility. High debt burden; Poor financial profile of pension fund; and Exposure to expenditure downloading by the Canton of Vaud. The ratings on City of Lausanne (Lausanne), in Switzerland reflect Standard&Poor's Ratings Services' expectation that Lausanne will post adequate operating surpluses and moderate deficits after capital spending until 2008, buoyed by cost-cutting measures and a reform of the municipal equalization scheme in the Canton of Vaud (A/Stable/--), where the city is located. The further factors supporting the ratings are the city's high wealth levels and improved budgetary performance. The ratings are constrained by the city's high debt burden, the poor financial profile of its pension fund, and expenditure pressures deriving
