We believe that the management of the Swiss Canton of Basel-City is well-equipped to weather budgetary challenges stemming from the upcoming reform on corporate taxes, which, when implemented, might lead to revenue losses for Basel-City. Although the timing of implementation and exact effects on Basel-City are still to be decided, we believe the canton's stringent budgeting execution and meaningful flexibilities will help it sustain balanced accounts after capital expenditures at least until 2019. We are revising our outlook on Basel-City to positive from stable and affirming our 'AA+/A-1+' ratings on Basel-City. The positive outlook reflects our view that Basel-City's budgetary performance may exceed our base case, thanks to sound planning practices and the canton's high level of preparedness for the
