Stable Swiss political and fiscal system including fiscal equalization Strong (albeit declining) budgetary performance of the canton Sophisticated and conservative cantonal fiscal management committed to fiscal consolidation Increasingly diverse economy with continuing long-term growth prospects in the medical engineering and life-science industries Below-average wealth in a Swiss context and dependency on funds from the Swiss national equalization system Large underfunding of the cantonal pension insurance scheme Concentration risk of corporate tax payers The ratings on the Swiss Canton of Solothurn reflect the very stable Swiss political and government system including vertical and horizontal financial equalization. The ratings are supported by Solothurn's above-average past budgetary performance, its sophisticated and conservative fiscal management, and moderate, albeit increasing, debt levels. Furthermore, the canton's
