Finansiering och rating

Likviddag: 2025-10-02

• Lånenummer: 260
• Förfallodag: 2030-10-02
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0013107000
• Ränta: Stibor 3M + 0,29.

Likviddag: 2025-06-19

• Lånenummer: 259
• Förfallodag: 2030-06-19
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0013106796
• Ränta: Stibor 3M + 0,295.

Likviddag: 2025-05-20

• Lånenummer: 258
• Förfallodag: 2030-07-01
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0023440268
• Ränta: Stibor 3M + 0,325.

Likviddag: 2025-01-28

• Lånenummer: 257
• Förfallodag: 2030-01-28
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0013885431
• Ränta: Stibor 3M + 0,27.

Likviddag: 2024-12-18

• Lånenummer: 256
• Förfallodag: 2029-12-18
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0013885399
• Ränta: Stibor 3M + 0,355.

Likviddag: 2024-11-06

• Lånenummer: 255
• Förfallodag: 2029-11-06
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0013361961
• Ränta: Stibor 3M + 0,285.

Likviddag: 2024-08-20

• Lånenummer: 254
• Förfallodag: 2029-08-20
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0013106218
• Ränta: Stibor 3M + 0,23.

Likviddag: 2024-05-23

• Lånenummer: 253
• Förfallodag: 2029-05-23
• Belopp i miljoner: 300
• Valuta: SEK
• ISIN: SE0013106143
• Ränta: Stibor 3M + 0,21.

Likviddag: 2024-04-23

• Lånenummer: 252
• Förfallodag: 2029-04-23
• Belopp i miljoner: 250
• Valuta: SEK
• ISIN: SE0013361524
• Ränta: Stibor 3M + 0,27.

Likviddag: 2024-04-17

• Lånenummer: 251
• Förfallodag: 2028-04-17
• Belopp i miljoner: 300
• Valuta: SEK
• ISIN: SE0013106002
• Ränta: Stibor 3M + 0,21.

Likviddag: 2024-02-16

• Lånenummer: 250
• Förfallodag: 2026-02-16
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0020356665
• Ränta: Stibor 3M + 0,07.

Likviddag: 2023-12-01

• Lånenummer: 248
• Förfallodag: 2028-12-01
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0013105756
• Ränta: Stibor 3M + 0,315.

Likviddag: 2023-12-01

• Lånenummer: 249
• Förfallodag: 2026-12-01
• Belopp i miljoner: 250
• Valuta: SEK
• ISIN: SE0013361235
• Ränta: Stibor 3M + 0,12.

Likviddag: 2023-10-13

• Lånenummer: 247
• Förfallodag: 2028-10-13
• Belopp i miljoner: 500
• Valuta: NOK
• ISIN: NO0013039503
• Ränta: Nibor 3M + 0,2175.

Likviddag: 2023-09-04

• Lånenummer: 246
• Förfallodag: 2028-09-04
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0019176892
• Ränta: Stibor 3M + 0,36.

Likviddag: 2023-05-30

• Lånenummer: 245
• Förfallodag: 2027-05-31
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0017780554
• Ränta: Stibor 3M + 0,235.

Likviddag: 2023-04-24

• Lånenummer: 244
• Förfallodag: 2028-04-24
• Belopp i miljoner: 500
• Valuta: NOK
• ISIN: NO0012898610
• Ränta: Nibor 3M + 0,23.

Likviddag: 2022-11-23

• Lånenummer: 243
• Förfallodag: 2027-11-23
• Belopp i miljoner: 700
• Valuta: NOK
• ISIN: NO0012759036
• Ränta: Nibor 3M + 0,24.

Likviddag: 2022-04-26

• Lånenummer: 239 (tranche 2)
• Förfallodag: 2027-04-20
• Belopp i miljoner: 300
• Valuta: SEK
• ISIN: SE0013104502
• Ränta: Stibor 3M + 0,75.

Likviddag: 2022-02-22

• Lånenummer: 242
• Förfallodag: 2027-02-22
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0013104932
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-11-15

• Lånenummer: 241 (tranche 2)
• Förfallodag: 2026-11-10
• Belopp i miljoner: 150
• Valuta: SEK
• ISIN: SE0016274187
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-11-10

• Lånenummer: 241
• Förfallodag: 2026-11-10
• Belopp i miljoner: 250
• Valuta: SEK
• ISIN: SE0016274187
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-08-31

• Lånenummer: 240
• Förfallodag: 2027-08-31
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0014783171
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-04-28

• Lånenummer: 238 (tranche 2)
• Förfallodag: 2026-04-01
• Belopp i miljoner: 200
• Valuta: SEK
• ISIN: SE0013102100
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-04-20

• Lånenummer: 239
• Förfallodag: 2027-04-20
• Belopp i miljoner: 200
• Valuta: SEK
• ISIN: SE0013104502
• Ränta: Stibor 3M + 0,75.

Likviddag: 2021-04-01

• Lånenummer: 238
• Förfallodag: 2026-04-01
• Belopp i miljoner: 500
• Valuta: SEK
• ISIN: SE0013102100
• Ränta: Stibor 3M + 0,75.

Likviddag: 2020-12-03

• Lånenummer: 237
• Förfallodag: 2025-12-03
• Belopp i miljoner: 400
• Valuta: SEK
• ISIN: SE0013104247
• Ränta: Stibor 3M + 0,75.

Bekräftad 12 september 2025.

Research Update:
Swedish Municipality of Sundsvall 'AA+/A-1+' And 'K-1' Ratings Affirmed; Outlook Stable

Overview

Deficits in municipal departments will pressure operating balances in the Municipality of Sundsvall and, together with significant investment in water and wastewater infrastructure, lead to increasing borrowing needs.

This will cause debt to grow again, and we now project direct debt to operating revenue will surpass 140% by end of 2027.

Nevertheless, we expect management will remain committed to its financial policies and safeguard the municipality's strong liquidity position.

We affirmed our 'AA+/A-1+' and 'K-1' ratings on Sundsvall. The outlook is stable.

Rating Action

On March 14, 2025, S&P Global Ratings affirmed its 'AA+/A-1+' long- and short-term issuer credit ratings on the Swedish Municipality of Sundsvall. The outlook is stable.

At the same time, we affirmed our 'K-1' Nordic regional scale rating on Sundsvall.

Outlook

The stable outlook reflects our expectation that deficits in municipal departments are temporary and operating balances will remain near 5% of revenue. We also anticipate the municipality's financial management team will remain committed to a strong liquidity position.

Downside scenario

We could lower the ratings if deficits in municipal boards persist and reflect financial management's looser control of expenditure. We could also lower the ratings if capital expenditure in the municipality's core budget or for water- and wastewater-related infrastructure in its subsidiary Sundsvall Vatten AB rises further, at which point debt accumulation would likely accelerate.

Upside scenario

We could raise the rating if budget discpline strengthens considerably, cost control proves effective, and the municipal group returns to a surplus after capital accounts while reducing debt levels.

Rationale

Pressure on Sundsvall's operating performance stems from current deficits in various municipal departments. However, we expect management will control expenditure growth, leading to a gradual recovery in Sundvall's operating balance. Lower inflation and growth in tax revenue should support this improvement.

Independent of operating performance, investment in water and wastewater infrastructure through key municipality subsidiary Sundsvall Vatten will accelerate debt accumulation over our forecast horizon until 2027. We think, however, that Sundsvall will remain committed to its financial policies, in particular safeguarding its strong liquidity position.

Management will act to remedy deficits in municipal boards

We consider the institutional framework under which Sundsvall operates as extremely predictable and supportive. In our view, the framework for local and regional governments (LRGs) in Sweden displays a high degree of stability, and the sector's revenue and expenditure management are based on a far-reaching equalization system and tax autonomy. Historically, the central government has provided extensive support to the LRG sector, for example through additional
grants distributed in response to the pandemic or more recently to cover rising pension costs (for more information, see "Swedish Municipalities And Regions Have Flexibility To Balance Costs," published Nov. 29, 2023, on RatingsDirect).

We anticipate Sundsvall's management will find an appropriate response to the deficits from various municipal departments in 2024. Following Sundsvall's negative results in both 2018 and 2019, the municipality's management implemented efficiency and governance measures to address structural deficits. Despite the weaker performance in 2024, we think cost control has improved and Sundsvall will take the required steps to address the new pressures. Our view of the municipality displaying sound debt and liquidity management is supported by its existing track record of maintaining a strong debt service coverage ratio.

Overall, we see widespread consensus regarding Sundsvall's key priorities, and we view the political landscape as stable. The municipality is governed by a majority coalition consisting of three parties from both traditional political blocks in Sweden: The Social Democratic Party, the Centre Party, and the Left Party.

Sundsvall benefits from Sweden's strong economic position, underlined by our national GDP per capita forecast of about $62,700 in 2024. The municipality's unemployment and income levels are approximately on par with national averages, and the socioeconomic profile is in line with that of domestic peers.

Debt accumulation will pick up because of increasing capital expenditure program

We think Sundsvall will gradually strengthen its operating balance, helped by lower inflation and stronger tax revenue growth. In 2024, the municipality's budget performed relatively poorly due to overdrafts related to elderly care and snow clearance, among other areas. Supported by subduing inflationary pressure on expenditure and tax revenue growth pickup, we expect management will remain committed to budgetary discipline and adhere to Sundsvall's financial targets from 2025. Consequently, we think the municipality's operating balances should gradually return to a level above 5% of operating revenue.

Our overall view on Sundsvall's budgetary performance considers, however, that investment in water- and wastewater-related infrastructure, carried out by Sundsvall Vatten, will create material financial shortfalls for the wider municipal group. Investments carried out by this subsidiary, which we view as a core municipal operation, will rise and we expect about Swedish krona (SEK) 430 million (€39.1 million) of annual debt funding needs over 2025-2027 for the entity, which on-lending will meet. To enhance comparability with other Swedish municipalities, we now reflect these investments in our overall assessment of Sundsvall's budgetary performance, even if the relevant capital expenditure does not show numerically in our projection of the core budget's fiscal results.

Because of the investment needs at the wider municipal group and on-lending from the core budget to municipal companies to finance them, we forecast an increased pace in Sundsvall's debt accumulation throughout 2027. We expect the municipality's direct debt to reach 143% of operating revenue by that year. In the municipal company sector, the main recipient of on-lending has historically been housing company Mitthem AB. However, in 2024, water company Sundsvall Vatten overtook the housing provider as the largest recipient of on-lent funds. We anticipate the water company to increase its volume of debt sourced via the municipality quickly. Sundsvall's debt and liquidity management is centralized via an in-house bank, which is responsible for all the municipality's and the companies' funding needs. With most debt in the municipal company sector sourced from the municipality anyway, we judge Sundsvall's exposure to contingent liabilities as limited and the risk of materialization low.

We no longer consider on-lending to Sundsvall Vatten to be a mitigating factor in our assessment of the municipality's debt burden. We base this on our view that, as the water and wastewater sector in Sweden embarks on a period of heightened, mostly debt-financed investment, the sector's credit quality will likely erode. Our approach aims for comparability between municipalities that conduct water and wastewater activities within their own balance sheets and
those integrating these activities into their energy companies.

Estimating its weighted-average debt service coverage ratio at 150%, we view Sundsvall's liquidity position as strong. It is supported by ample cash holdings, checking accounts, and contracted facilities and should remain strong until at least 2026. At the same time, the municipality has a strong record of contracting facilities commensurate with an expanding debt burden and its maturity profile. Moreover, Sundsvall has a history of reliable access to external financing, even in times of financial distress. The municipality's funding regularly makes use of a SEK12 billion medium-term note program and SEK3 billion commercial paper program.

Key Statistics

Municipality of Sundsvall - Selected Indicators (Mil. SEK)

Operating Revenue:

• 2022: 8,369
• 2023: 8,741
• 2024e: 8,992
• 2025bc: 9,324
• 2026bc: 9,653
• 2027bc: 9,948.

Operating Expenditure:

• 2022: 7,427
• 2023: 8,166
• 2024e: 8,612
• 2025bc: 8,891
• 2026bc: 9,167
• 2027bc: 9,424.

Operating Balance:

• 2022: 942
• 2023: 575
• 2024e: 380
• 2025bc: 433
• 2026bc: 486
• 2027bc: 524.

Operating Balance (% of Operating Revenue):

• 2022: 11.3%
• 2023: 6.6%
• 2024e: 4.2%
• 2025bc: 4.6%
• 2026bc: 5.0%
• 2027bc: 5.3%.

Capital Revenue:

• 2022: 114
  
• 2023: 170
• 2024e: 90
• 2025bc: 50
• 2026bc: 50
• 2027bc: 50.

Capital Expenditure:

• 2022: 713
• 2023: 836
• 2024e: 875
• 2025bc: 679
• 2026bc: 700
• 2027bc: 695.

Balance After Capital Accounts:

• 2022: 343
• 2023: (91)
• 2024e: (405)
• 2025bc: (196)
• 2026bc: (164)
• 2027bc: (120).

Balance After Capital Accounts (% of Total Revenue):

• 2022: 4.0%
• 2023: (1.0%)
• 2024e: (4.5%)
• 2025bc: (2.1%)
• 2026bc: (1.7%)
• 2027bc: (1.2%).

Debt Repaid:

• 2022: 2,750
• 2023: 3,250
• 2024e: 3,409
• 2025bc: 3,250
  
• 2026bc: 3,400
• 2027bc: 4,284.

**Gross Borrowings**:

• 2022: 3,093
• 2023: 4,054
• 2024e: 4,249
• 2025bc: 3,697
• 2026bc: 4,248
• 2027bc: 5,251.

Balance After Borrowings:

• 2022: 59
• 2023: 104
• 2024e: (125)
• 2025bc: (214)
• 2026bc: 93
• 2027bc: 60.

Direct Debt (Outstanding at Year-End):

• 2022: 10,489
• 2023: 11,293
• 2024e: 12,085
• 2025bc: 12,429
• 2026bc: 13,277
• 2027bc: 14,244.

Direct Debt (% of Operating Revenue):

• 2022: 125.3%
  
• 2023: 129.2%
• 2024e: 134.4%
• 2025bc: 133.3%
• 2026bc: 137.5%
• 2027bc: 143.2%.

Tax-Supported Debt (Outstanding at Year-End):

• 2022: 10,522
• 2023: 11,326
• 2024e: 12,085
• 2025bc: 12,462
• 2026bc: 13,309
• 2027bc: 14,276.

Tax-Supported Debt (% of Consolidated Operating Revenue):

• 2022: 100.5%
• 2023: 102.0%
• 2024e: 104.5%
• 2025bc: 107.9%
• 2026bc: 111.6%
• 2027bc: 116.4%.

Interest (% of Operating Revenue):

• 2022: 0.9%
• 2023: 2.3%
• 2024e: 3.0%
• 2025bc: 2.8%
• 2026bc: 2.9%
• 2027bc: 2.6%.

Local GDP Per Capita (SEK):

• Not Available (N/A).

National GDP Per Capita (SEK):

• 2022: 561,139
• 2023: 590,038
• 2024e: 603,039
• 2025bc: 623,997
• 2026bc: 652,027
• 2027bc: 678,330.

Note: Data marked with "e" indicates preliminary results, and "bc" (base case) reflects S&P Global Ratings' most likely scenario.

The data and ratios above result in part from S&P Global Ratings' own calculations, drawing on national as well as international sources, reflecting S&P Global Ratings' independent view on the timeliness, coverage, accuracy, credibility, and usability of available information. The main sources are the financial statements and budgets, as provided by the issuer. SEK--Swedish krona.

Ratings Score Snapshot

Municipality of Sundsvall - Ratings score snapshot

• Institutional framework: 1
  
• Economy: 1
  
• Financial management: 2
  
• Budgetary perfomance: 3
• Liquidity: 1
• Debt burden: 4
  • Stand-alone credit profile: aa+
  • Issuer credit rating: AA+.

S&P Global Ratings bases its ratings on non-U.S. local and regional governments (LRGs) on the six main rating factors in this table. In the "Methodology For Rating Local And Regional Governments Outside Of The U.S.," published on July 15, 2019, we explain the steps we follow to derive the global scale foreign currency rating on each LRG. The institutional framework is assessed on a six-point scale: 1 is the strongest and 6 the weakest score. Our assessments of economy, financial management, budgetary performance, liquidity, and debt burden are on a five-point scale, with 1 being the strongest score and 5 the weakest.

Key Sovereign Statistics

Sovereign Risk Indicators, Dec. 9, 2024. An interactive version is available at
http://www.spratings.com/sri

Related Criteria

General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021.

• Criteria | Governments | International Public Finance: Methodology For Rating Local And
  Regional Governments Outside Of The U.S., July 15, 2019
• General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017
• General Criteria: Principles Of Credit Ratings, Feb. 16, 2011.

Related Research

• Sweden, Feb. 3, 2025
• Local And Regional Government Outlook 2025: Moderate Debt Accumulation In The Nordics, Jan. 16, 2025
• Institutional Framework Assessments For Local And Regional Governments Outside Of The U.S., July 31, 2024
• Swedish Municipalities And Regions Have Flexibility To Balance Costs, Nov. 29, 2023.

In accordance with our relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable (see 'Related Criteria And Research'). At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the recommendation, the
Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action (see 'Related Criteria And Research').

Ratings List

Ratings Affirmed Sundsvall (Municipality of)

• Issuer Credit Rating: AA+/Stable/A-1+
• Nordic Regional Scale: --/--/K-1
• Senior Unsecured: AA+
• Commercial Paper: K-1.

Kontakt S&P Global

Primary credit analyst, Dennis Nilsson
E-post: dennis.nilsson@spglobal.com