A sound and improving financial performance A moderate debt burden that largely consists of on-lending to self-supporting municipal companies A stable, well-diversified local economy with above-average income levels Limited flexibility to adjust revenues and expenditures Unfunded pension liabilities in line with Swedish average The ratings on Sweden's Municipality of Sundsvall reflect a sound and improving 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 levels. The ratings, however, also take account of limited flexibility to adjust revenues and expenditures with 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
