Standard&Poor's Ratings Services said today it has affirmed the 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook is stable. The rating reflects our view of Lausanne's resilient economy, its solid budgetary performance, and its large portfolio of assets. Offsetting these factors are the city's high direct debt burden and high amount of unfunded pension liabilities. We expect its financing needs to increase in the near future, though they should remain moderate. As the economic center of the Canton of Vaud (AA+/Stable/--), Lausanne has diversified business sectors. While the city's population accounts for 18% of the cantonal total, it gathers 26% of Vaud's workforce. In our view, the canton has been quite resilient to
