The Swiss City of Lausanne will likely continue to enforce its strong rein over operating expenditure. We believe that it will post moderate annual deficits after capital accounts until 2013. We are affirming our 'A+' long-term rating on Lausanne. The stable outlook reflects our belief that the city will control its high debt burden. On Sept. 28, 2011, Standard&Poor's Ratings Services affirmed its 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook is stable. The rating on Lausanne reflects our view of the "predictable and well-balanced" institutional framework for municipalities located in the Canton of Vaud (AA+/Positive/--), including Lausanne. The rating also factors in Lausanne's wealthy and diversified economy, the city's "positive" financial management,
