The rating on the City of Lausanne reflects: Its stable and diversified economy, which has further growth potential; The supportive nature of the cantonal revenue equalization system of the Swiss Confederation (AAA/Stable/A-1+); and The city's improving financial performance, despite an increase in financing requirements in 2000. Constraining factors are the city's: High debt burden, which reduces financial flexibility; Limited revenue flexibility; and Its cyclical tax base. Lausanne, the capital of the State of Vaud, accounts for 20% of the state's population, with 125,000 inhabitants. It is also known as the Olympic capital, as it is home to the International Olympic Committee (IOC). During the 1990s, the city's population decreased steadily (falling by 0.5% between 1990 and 1997) as a result
