Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the cases of sovereigns, sub-sovereigns and supranational organisations that may act as a lender of last resort.

Scope performs monitoring reviews to determine whether material changes and/or changes in macro-economic or financial-market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit rating’s performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website and/or on its subscription platform ScopeOne.

Scope completed the monitoring review for the Swiss Confederation (long-term local- and foreign-currency issuer and senior unsecured debt ratings: AAA/Stable; short-term local- and foreign-currency issuer ratings: S-1+/Stable) on 18 March 2025.

This monitoring note does not constitute a credit-rating action, nor does it indicate the likelihood that Scope will conduct a credit-rating action in the short term. Information about the latest credit-rating action connected with this monitoring note along with the associated rating history can be found on scoperatings.com.

Key rating factors

For the updated rating report accompanying this review, please see here.

Switzerland’s AAA ratings are underpinned by: i) its wealthy and well-diversified economy, highly skilled labour force and institutional strengths, including a stable, consensus-oriented and effective policy framework, which underpin a high degree of economic resilience; ii) strong fiscal fundamentals, driven by a strong commitment to longer-term debt sustainability and stringent and constitutionally-anchored budgetary rules, in addition to favourable financing conditions; and iii) a significant net external asset position, highly competitive exporting industries and the safe-haven status of the Swiss franc.

Challenges include: i) a highly concentrated and very large banking sector in relation to GDP, posing potential contingent liability risks to public finances; ii) imbalances in the real estate market with high, albeit declining, levels of residential overvaluation posing a moderate risk of market correction. These risks are mitigated by the significant wealth of Swiss households, as well as by the effective financial policy making and the Swiss Financial Market Supervisory Authority’s prudent supervisory framework. Finally, uncertainties about future Swiss-EU bilateral relations have been reduced with an agreement reached in substance at the end of 2024.

The Stable Outlook reflects Scope’s assessment that risks to the ratings are balanced.

The ratings/Outlooks could be downgraded if, individually or collectively: i) financial stability risks materialised with significant negative implications for the economic growth and public finance outlook; and/or ii) the economic outlook worsened materially.

The methodology applicable for the reviewed ratings and/or rating Outlooks (Sovereign Rating Methodology, 27 January 2025) is available available on scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst: Julian Zimmermann, Director

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