Improving budgetary performance Flexible investments Wealthy economy sustained by good economic prospects Favorable equalization reform High debt burden Poor financial performance of the pension fund Risk of new transfer of responsibilities from the Canton of Vaud The ratings on the Swiss City of Lausanne reflect its improved budgetary performance, flexible investments, and wealth. Offsetting these factors are the city's high debt burden, the poor financial profile of its pension fund, and potential expenditure transfers from the Canton of Vaud (A+/Stable/--). In 2005, Lausanne's operating surplus increased to 7% of operating revenues, from 6% one year earlier, primarily thanks to saving measures on the expenditure side and higher than expected tax revenues. At the same time, thanks to the partial deferral
