The ratings on Sweden's Municipality of Sundsvall reflect: a track record of sound 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. The ratings, however, also take account of limited flexibility to adjust revenues and expenditures due to an 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
