We expect the Swedish Municipality of Sundsvall to successfully contain spending on social services and maintain sound budgetary performance through 2016, despite overall increasing municipal investment needs. We expect Sundsvall's management to use its flexibility and to enforce strict budget discipline through 2016. We are affirming our 'AA+/A-1+' and 'K-1' ratings on Sundsvall. The stable outlook reflects our expectation that Sundsvall will successfully navigate budgetary pressures and retain sound budgetary performance, resulting in an only moderate buildup of debt in our base case through 2016. On April 11, 2014, Standard&Poor's Ratings Services affirmed its 'AA+' long-term and 'A-1+' short-term issuer credit ratings on the Swedish Municipality of Sundsvall. The outlook is stable. At the same time, we affirmed
