The ratings on the Swiss City of Lausanne reflect its improved budgetary performance, flexible investments, and wealth. Offsetting these factors are the city's high debt burden, the poor financial profile of its pension fund, and potential expenditure transfers from the Canton of Vaud (A+/Stable/--). In 2005, Lausanne's operating surplus increased to 7% of operating revenues, from 6% one year earlier, primarily thanks to saving measures on the expenditure side and higher than expected tax revenues. At the same time, thanks to the partial deferral of planned investments, Lausanne managed to fully self-finance its capital program in 2005, thereby containing long-term debt below 200% of operating revenues. Though Standard&Poor's Ratings Services expects a slight increase in debt over the
