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

Although COVID-19-related effects will weigh on the Canton of Basel-Country's budgetary performance in 2020, the impact will be mitigated by the canton's relatively pandemic-resilient economy, and a taxation system that partially delays the expected dip in tax revenue to 2021. We anticipate fiscal outcomes will pick up again from 2022, but tax reform projects and capital expenditure (capex) will likely prevent the canton from achieving the very strong performance seen in the past three years. Overall, we forecast the canton will report only minor deficits after capex over 2020-2023. We are affirming our 'AA+/A-1+' ratings on Basel-Country. The outlook is stable. On Nov. 6, 2020, S&P Global Ratings affirmed its 'AA+/A-1+' long- and short-term issuer credit ratings on the Swiss

...- Although COVID-19-related effects will weigh on the Canton of Basel-Country's budgetary performance in 2020, the impact will be mitigated by the canton's relatively pandemic-resilient economy, and a taxation system that partially delays the expected dip in tax revenue to 2021. - We anticipate fiscal outcomes will pick up again from 2022, but tax reform projects and capital expenditure (capex) will likely prevent the canton from achieving the very strong performance seen in the past three years. - Overall, we forecast the canton will report only minor deficits after capex over 2020-2023. - We are affirming our '##+/A-1+' ratings on Basel-Country. The outlook is stable....

Research Update