Rating: Standard & Poor’s note Geneva in negative perspective … – Tribune de Genève

The finance of the Canton of Geneva since 2010 rated AA – by the rating agency Standard & Poor’s (S&P) , with a stable outlook. It goes negative because of the risk of increase of the debt of the canton always is subject to the pension fund for civil servants.

The rating of AA – is approximately equal to a rating of 5 out of 6, which is identical to that of the region-Auvergne-Rhone-Alpes. Vaud and Zurich hold a AAA rating is 6 on 6.

According to the statement released Monday by the Department of finance, the negative outlook reflects the risk of a significant increase in the debt of the canton due to a potential recapitalisation of the main pension fund of the State, the CPEG. In the case of more limited impact of such a recapitalization potential, the outlook could be revised to stable, noted the State Council in its statement released Monday.

The unfunded liabilities in respect of the CPEG, remain very high in comparison international, note S&P. They represent 93% of the operating revenue at the end of 2015, or nearly 8 billion swiss francs, bringing the debt of the Township at more than $ 21 billion to chf 42’000 chf per capita).

S&P also evokes the decline in business taxes that will result as early as 2019, the ongoing reform of the taxation of companies (RIE III). But the agency does not sanction the temporary lifting of the brake mechanism to the deficit, announced by the State Council on 13 September last.

Income per capita very high

Geneva must maintain its rating of AA – to the good health of its economy, the S&P describes as “very strong in an international context” as well as “governance and financial management judged to be strong,” from the State Council.

The Canton of Geneva benefits from an economic fabric is rich and diverse with a gross domestic product (GDP) per capita of 99’449 swiss francs in 2015, very high level by international comparison, note the agency that does not appear to consider that this average does not reflect the actual distribution of income. It is noted, however, that in 2015 the geneva economy has suffered a slowdown – higher than at the national level.

S&P said to anticipate a gradual recovery of the growth of geneva’s GDP until 2018, a pace however is slightly more moderate than that of Switzerland. This has a significant impact on the finances of the cantonal to the extent that nearly 80% of operating revenue consist of taxes collected locally.

Under the impact of the funding requirements after investment, the consolidated indebtedness of the Township is expected to increase to 157% of operating revenue consolidated in 2018, against 145% in 2015. (TDG)

(Created: 07.11.2016, 12: 24 pm)