Lausanne continues to benefit from its very strong economy and favorable institutions, supporting the city's budgetary performance, while its large debt and increasing debt guarantees continue to weigh on its credit quality. We expect the city's strong management will absorb the impact of a corporate tax reform in Vaud from 2019, and limit deficits after capital accounts. We are affirming our 'A+' long-term rating on Lausanne. The outlook is stable. On June 8, 2018, S&P Global Ratings affirmed its 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook remains stable. The stable outlook reflects our view that Lausanne, the capital city of the Canton of Vaud, will maintain sound budgetary performance through 2020. We believe the
