The rating on the Swedish Municipality of Sundsvall reflects the stable and supportive nature of the Swedish local and regional government (LRG) system, including a comprehensive equalization system and propensity to support in times of financial distress. Sundsvall's moderate debt burden, strong liquidity position, and expected resilient budgetary performance provide additional support for the rating. Standard&Poor's Ratings Services considers these strengths to be offset by an unemployment level that has risen above the national average, uncertainty regarding the evolution of coming years' tax revenues, and partly unfunded pension liabilities (which are nevertheless in line with the Swedish average). Sundsvall benefits from strong system support and institutional stability. A far-reaching equalization system and good compliance with the sector's balanced
