The economic importance of the public sector (market segment "Public Finance") in Switzerland, with a share of around one third of gross domestic product, tends to be at the lower end of the scale compared with the industrialised countries of the OECD. However, its importance increases sharply if state-owned companies are also taken into account. Of the Swiss borrowers listed with bonds on the SIX Swiss Exchange, around 30% are government-related companies.
We distinguish between the following two sub-segments when assigning ratings in the public sector market segment:
- Cantons & municipalities with autonomous tax collection competence (local and regional authorities)
- Companies organised under private or public law with a statutory mandate from the public sector to provide basic public service products and services, combined with strategic participation and/or explicit state guarantees by the public sector (state-owned companies)