The rating on Lausanne reflects Standard&Poor's Ratings Services' view of the "predictable and well-balanced" institutional framework for municipalities located in the Canton of Vaud (AA+/Positive/--), including Lausanne. The rating also factors in Lausanne's wealthy and resilient economy with strong health and education sectors, the city's "positive" financial management, and its limited contingent liabilities. The rating is constrained by Lausanne's high tax-supported debt, large unfunded pension liabilities stemming from its pension fund Caisse de Pensions du Personnel Communal (CPCL), and its "negative" liquidity position. We view Lausanne's financial management as "positive" for the rating. We consider the city to have strong political willingness to maintain a sound budgetary performance and contain debt, detailed and realistic financial planning, and prudent
