MILAN (Standard&Poor's) July 19, 2006--Standard&Poor's Ratings Services said today that it affirmed its 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook is stable. The ratings reflect the city's improved budgetary performance, flexible investments, and wealth. Offsetting these factors are the city's high debt burden, the poor financial profile of the city's pension fund, and potential expenditure transfers from the Canton of Vaud (A+/Stable/--). We expect that Lausanne will implement additional cost cutting measures and limit its investment plan in order to contain debt below 205% of operating revenues until year-end 2008. Though very high, this level is compatible with the rating. "If the city continues to improve its budgetary performance and
