The ratings on the City of Lausanne, located in the Swiss Canton of Vaud, reflect its strong economic profile but also its weakening budgetary performance, as well as risks arising from the city's pension fund and the future performance of its utility company. The ratings are supported by the city's strong service-oriented economy and high wealth levels. The local economy is diversified and relies on small and midsize enterprises, although Lausanne also hosts a substantial number of international companies. The ratings are also supported by the city management's commitment and willingness to improve budgetary performance over the next few years. Lausanne has some degree of revenue-raising flexibility, as it has the right to determine the prices of utility services sold
