On Aug. 27, 2007, 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 on Lausanne reflect its improved budgetary performance, good cost control, and wealth. Offsetting these factors are the city's high debt burden and the poor financial profile of its pension fund. In 2006, Lausanne's operating surplus (before amortization) increased to 9% of operating revenues, from 6.5% one year earlier. The improvement was primarily due to the beneficial effects of the new equalization system, good cost control, and higher-than-expected tax revenues, especially corporate profit tax and succession tax, which are fairly volatile. At the same time, thanks to lower investments coupled with this higher
