The ratings on Sweden's Municipality of Sundsvall reflect Standard&Poor's Ratings Services' view of Sweden's stable and supportive local and regional government (LRG) system and the municipality's dynamic and wealthy local economy. Sundsvall's sound financial performance, moderate debt position and our assessment of the municipality's "positive" liquidity position further support the ratings. We also assess Sundsvall's management as a "positive" factor on the ratings. The ratings also factor in our assessment of average budgetary flexibility in addition to our expectations of moderately increasing tax-supported debt because an uptick in capital expenditures in the municipality and its company sector are set to require some debt financing. In our view, the Swedish LRG system is characterized by predictability, supportiveness, and a
