Summary: Lausanne (City of)

Lausanne, the capital city of the Canton of Vaud, has sound economic fundamentals, strong management, and a favorable institutional framework. Despite the implementation of the cantonal corporate tax reform from January 2019, and continued high investments, Lausanne's strong management will limit deficits after capital accounts by 2021, in our view. The predictable and well-balanced institutionnal system of municipalities located in the canton and a wealthy economy should enable Lausanne to maintain sound budgetary performance. These strong credit characteristics partly offset the city's very high debt, low debt-service coverage, and average budgetary flexibility. Lausanne will implement the corporate tax reform, and limit deficits and further large debt accumulation by 2021. The implementation of the cantonal corporate tax reform in Vaud weighs

...Credit context and assumptions Base-case expectations Lausanne, the capital city of the Canton of Vaud, has sound economic fundamentals, strong management, and a favorable institutional framework. + Despite the implementation of the cantonal corporate tax reform from January 2019, and continued high investments, Lausanne's strong management will limit deficits after capital accounts by 2021, in our view. + The predictable and well-balanced institutionnal system of municipalities located in the canton and a wealthy economy should enable Lausanne to maintain sound budgetary performance. + These strong credit characteristics partly offset the city's very high debt, low debt-service coverage, and average budgetary flexibility. Lausanne will implement the corporate tax reform, and limit deficits and further large debt accumulation by 2021. + The implementation of the cantonal corporate tax reform in Vaud weighs on the city's finances, since it translates into tax cuts, but the city will receive...

Summary