The ratings on Sweden's Municipality of Sundsvall reflect a sound and improving financial performance; a moderate debt burden that largely consists of onlending to self-supporting municipal companies; and a stable well-balanced local economy with above-average income levels. The ratings, however, also take account of limited flexibility to adjust revenues and expenditures with above average tax rate and expenditures largely attributable to compulsory labor-intensive services. Furthermore, Sundsvall has unfunded pension liabilities in line with the Swedish average. 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
