A favorable economic, institutional, and political backdrop supports Basel-Country's continuing consolidation efforts. The canton benefits from Switzerland's economic growth and the dynamics of the pharmaceuticals sector. Fiscal revenue composition facilitates absorption of corporate tax reform (TRAF) costs. Election results and recent referendums signal continuing electoral support for consolidation. S&P Global Ratings anticipates nearly balanced accounts and gradual deleveraging. Previous consolidation efforts and completion of pension fund recapitalization should allow nearly balanced accounts after capital expenditures. With no significant debt maturities until 2022, the canton displays excellent liquidity and will not require long-term borrowing for almost three years. We therefore expect the debt ratio to decline gradually. Our outlook is stable because we forecast that Basel-Country will display roughly balanced accounts
