Canton Basel-Stadt again with top AAA rating
The international rating agency Standard & Poor's confirms the canton's top rating and attests it a stable outlook despite the current COVID-19 pandemic. The canton first received the top AAA rating in 2018. The rating agency believes that the exceptionally high tax revenues in 2020 and 2021 will be able to absorb the financial burden of the pandemic.
In its statement, Standard & Poor's refers to the canton's strong economic situation and sound financial policy. Although the effects of the pandemic will also lead to a decline in economic output in Basel-Stadt, this will be less pronounced than in other Swiss regions, thanks in particular to the strong life science industry. Proving beneficial is the solid and disciplined budgetary policy of recent years, which has created sufficient room for manoeuvre to absorb both the temporary effects of the tax reform (SV17) and the pandemic. Standard & Poor's therefore considers the canton to be financially well prepared for the second wave of the pandemic. Finally, the rating agency acknowledges the substantial reduction in debt over the last few years and the excellent liquidity of the canton of Basel-Stadt. The Department of Finance is delighted by Standard & Poor's top rating. The experts' assessment underlines the forward-looking financial policy of the cantonal government.
Standard & Poor's is one of the most important international rating agencies. The ratings allow an effortless assessment of the creditworthiness of debtors at any time. The canton of Basel-Stadt has been assessed by Standard & Poor's for several years and received the highest rating of AAA for the first time in 2018. The AAA rating gives Basel-Stadt the highest debtor creditworthiness. Of the cantons in Switzerland rated by Standard & Poor's, only Zurich and Vaud have been issued with an AAA rating.