Research Update: Swiss Canton of Basel-Country 'AA+/A-1+' Ratings Affirmed; Outlook Remains Stable

Assuming a stable economic environment and recognizing the beneficial effects of past years' cost reductions as well as structural reforms, we now forecast moderately stronger operating surpluses and a progression toward balanced accounts after capital revenues and expenditures for the Canton of Basel-Country in 2018-2021. Thanks to improved budgetary performance, and with a smaller recapitalization requirement for its pension fund in 2019 than previously expected, we believe that the canton will be able to avoid net new borrowings until at least 2022, but instead make small debt repayments. We are affirming our 'AA+/A-1+' ratings on Basel-Country. The outlook remains stable. On May 25, 2018, S&P Global Ratings affirmed its 'AA+/A-1+' long- and short-term issuer credit ratings on the Swiss Canton

...Assuming a stable economic environment and recognizing the beneficial effects of + past years' cost reductions as well as structural reforms, we now forecast moderately stronger operating surpluses and a progression toward balanced accounts after capital revenues and expenditures for the Canton of Basel-Country in 2018- 2021. Thanks to improved budgetary performance, and with a smaller recapitalization + requirement for its pension fund in 2019 than previously expected, we believe that the canton will be able to avoid net new borrowings until at least 2022, but instead make small debt repayments. We are affirming our `##+/A-1+' ratings on Basel-Country. + The outlook remains stable. +...

Research Update