The ratings on the Municipality of Sundsvall--located 350 kilometers (km; 200 miles) north of Sweden's capital city Stockholm (AA+/Stable/A-1+)--reflect Sundsvall's: Stable and well-diversified local economy; Satisfactory financial performance; and Moderate debt levels. The rating, however, also takes into account: The municipality's limited flexibility for adjusting revenues and expenditures; and Pressures stemming from an aging and decreasing population. Sundsvall's local economy is well diversified and is characterized by a dynamic, growing service sector, while the importance of the traditionally strong industrial sector is decreasing. The municipality is not dependent on any one single private employer or sector, although the public sector accounts for about 33% of employment, in line with the national average. In the 1970s, four state agencies with substantial
