PARIS (Standard&Poor's) Aug. 27, 2007--Standard&Poor's Ratings Services said today that it has affirmed its 'A+' long-term issuer credit rating on the Swiss City of Lausanne. The outlook is stable. "The ratings on Lausanne reflect its improved budgetary performance, good cost control, and wealth," said Standard&Poor's credit analyst Bertrand de Dianous. Offsetting these factors are the city's high debt burden and the poor financial profile of its pension fund. In 2006, Lausanne's operating surplus (before amortization) increased to 9% of operating revenues, from 6.5% one year earlier. The improvement was primarily due to the beneficial effects of the new equalization system, good cost control, and higher-than-expected tax revenues, especially corporate profit tax and succession tax,
