The ratings on the Swedish Municipality of Sundsvall reflect Standard&Poor's Ratings Services' view of the municipality's dynamic local economy, robust budgetary performance, and moderate debt burden. Sweden's stable and supportive local and regional government (LRG) system, together with Sundsvall's strong budgetary flexibility provide additional support for the ratings. Offsetting these strengths, in our view, is somewhat low liquidity coverage of short-term debt maturities, an unemployment rate higher than the national average, and sectorwide uncertainties regarding the evolution of coming years' tax revenues. Sundsvall's local economy is stable and diverse. Although employment still centers on the economically important pulp and paper industry, this reliance has declined in recent years. The local per capita tax base stands at 103% the
