The rating on the Municipality of Sundsvall–-the 14th most populous municipality in Sweden (local currency AAA/Stable/A-1+; foreign currency AA+/Positive/A-1+), situated 350km north of Stockholm (AA+/Stable/A-1+)--reflects its stable, well-diversified local economy, satisfactory financial performance, and moderate debt levels. The rating also takes into account the municipality's limited flexibility for adjusting revenues and expenditures and some pressures stemming from an aging and decreasing population. Sundsvall's local economy is well diversified and is characterized by a dynamic, growing service sector, with the importance of the traditionally strong industrial sector decreasing. The municipality is not dependent on one single employer or sector, although the public sector provides about 33% of employment, in line with the national average. In the 1970s, four state agencies with
