The ratings on the Swiss Canton of Solothurn reflect its membership of a stable national government with a vertical and horizontal financial equalization system. The ratings are supported by Solothurn's above-average financial performance, its highly sophisticated management, and moderate and declining debt levels. Furthermore, the canton benefits from its diversified economic structure and strategically favorable geographic position, which is well connected to Switzerland's transportation infrastructure. The ratings are constrained by below-average economic wealth, leaving the canton dependent on funds from the national equalization system (NFA; "Neugestaltung des Finanzausgleichs und der Aufgabenteilung zwischen Bund und Kantonen"). The ratings also take into account the relatively low cover ratio of Solothurn's cantonal pension fund of 79.3% in 2007. Another constraining factor is that
