Research Update: S&PGR Affirms Swiss Canton of Basel-Country At 'AA+/A-1+'; Outlook Stable

We recognize that the Canton of Basel-Country is making progress on implementing an ambitious cost-saving program, a process designed to sustainably stabilize operating performance and preserve its operating surplus. However, with significant ongoing regular capital expenditures and yet another pension fund recapitalization becoming necessary, the canton's already high debt ratio will inevitably display another rise. We are nevertheless affirming our 'AA+/A-1+' ratings on Basel-Country. The stable outlook reflects our expectation that Basel-Country will continue on its consolidation path, maintain exceptional liquidity and, assuming the absence of further one-off negative effects, stabilize its debt ratio at the (albeit increased and high) 2018 level. On May 26, 2017, S&P Global Ratings affirmed its 'AA+/A-1+' long- and short-term issuer credit ratings on the

...We recognize that the Canton of Basel-Country is making progress on implementing + an ambitious cost-saving program, a process designed to sustainably stabilize operating performance and preserve its operating surplus. However, with significant ongoing regular capital expenditures and yet another + pension fund recapitalization becoming necessary, the canton's already high debt ratio will inevitably display another rise. We are nevertheless affirming our '##+/A-1+' ratings on Basel-Country. + The stable outlook reflects our expectation that Basel-Country will continue on + its consolidation path, maintain exceptional liquidity and, assuming the absence of further one-off negative effects, stabilize its debt ratio at the (albeit increased and high) 2018 level....

Research Update