The ratings on the Swedish Municipality of Sundsvall reflect the very strong system support and institutional stability of the local and regional government (LRG) system in the Kingdom of Sweden (AAA/Stable/A-1+), a track record of adequate financial performance; a moderate debt burden, a large part of which is onlent to self-supporting municipal companies; and an adequate liquidity position. Offsetting these strengths, however, are tax revenues that have been hit by a national economic slowdown; unfunded pension liabilities in line with the Swedish average; slightly limited flexibility to adjust revenues and expenditures, due to an above-average tax rate; and expenditures, largely attributable to compulsory labor-intensive services. The Sundsvall benefits from very strong system support and institutional stability. The Swedish LRG system
