Very strong system support and institutional stability. Moderate debt burden consisting mainly of onlending to self-supporting municipal companies. Strong liquidity position. Strict budget discipline expected to uphold operational performance. Unemployment above the national average. Uncertainty surrounding evolution of coming years' tax revenues. Partly unfunded pension liabilities. 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
