The rating on the Swiss City of Lausanne reflects Standard&Poor's Ratings Services' view of the "predictable and well-balanced" institutional framework for municipalities located in the Canton of Vaud (AAA/Stable/--), including Lausanne. We also factor in Lausanne's wealthy and resilient economy, with its 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 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 regard the city as having strong political willingness to maintain a sound budgetary performance, detailed and realistic financial planning, and prudent
