On July 26, 2005, Standard&Poor's Ratings Services revised its outlook to stable from negative on the City of Lausanne (Lausanne), in Switzerland. At the same time, the 'A+' long-term issuer credit rating was affirmed. The outlook revision reflects Standard&Poor's expectation that Lausanne will post adequate operating surpluses and moderate deficits after capital spending until 2008, buoyed by cost-cutting measures and a reform of the municipal equalization scheme in the Canton of Vaud (A/Stable/--), where the city is located. The ratings on Lausanne are supported by the city's high wealth levels and improved budgetary performance. The ratings are constrained by the city's high debt burden, the poor financial profile of its pension fund, and expenditure pressures deriving
