On July 19, 2006, Standard&Poor's Ratings Services affirmed its 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook is stable. The ratings reflect the city's improved budgetary performance, flexible investments, and wealth. Offsetting these factors are the city's high debt burden, the poor financial profile of the city's pension fund, and potential expenditure transfers from the Canton of Vaud (A+/Stable/--). In 2005, Lausanne's operating surplus increased to 7% of operating revenues from 6% one year earlier, primarily thanks to saving measures on the expenditure side and higher than expected tax revenues. At the same time, thanks to the partial deferral of planned investments, Lausanne managed to fully self-finance its capital program in 2005, thereby
