On July 23, 2004, Standard&Poor's Ratings Services revised its outlook on the Swiss City of Lausanne to negative from stable, following a weakening of its budgetary performance. The 'A+' long-term issuer credit rating was affirmed. The outlook revision reflects that the ratings could be lowered should Lausanne not be able to return to operating surpluses sufficient to finance investment spending and to prevent a further rise in its debt burden to substantially above 220% of operating revenue. The ratings on Lausanne, located in the Swiss Canton of Vaud, reflect its strong economic profile but also its weakening budgetary performance, as well as risks arising from the city's pension fund and the future performance of its utility company. The
