The ratings on Sweden's Municipality of Sundsvall reflect a stable financial performance; a moderate debt burden that to largely consists of on-lending to self-supporting municipal companies; and a stable well-balanced local economy with above-average-income levels, and declining, although still above-national-average, unemployment rate. The ratings, however, also take account of demographic pressure from an ageing and slow-growing population and limited flexibility to adjust revenues and expenditures. Sundsvall's local economy is well balanced: the importance of the traditionally strong industrial sector is decreasing and a dynamic growing services sector has evolved. Sundsvall's economy is characterized by three main sectors: forestry, IT, and banking and insurance. The municipality's unemployment rate has developed in line with national trends, and in April 2005 stood at
