Wealthy, diversified, and resilient economy. Solid operating performance. Large portfolio of assets held by the city. High direct debt burden. The pension fund financial situation remains fragile despite a partial recapitalization. Expected increase of the deficit after capital expenditure in the medium term. The rating reflects our view of Lausanne's resilient economy, its solid operating performance, and its large portfolio of assets. Offsetting these factors are the city's high direct debt burden and high though reduced amount of unfunded pension liabilities. We expect its financing needs to increase in the near future, though they should remain moderate. As the economic center of the Canton of Vaud (AA+/Stable/--), Lausanne has diversified business sectors. While the city's population accounts for 18% of
