Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the cases of sovereigns, sub-sovereigns and supranational organisations that may act as a lender of last resort.

Scope performs monitoring reviews to determine whether material changes and/or changes in macro-economic or financial-market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit rating’s performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope announces the result of each monitoring review on its website and/or on its subscription platform ScopeOne.

Scope completed the monitoring review for the City of Trondheim (long-term local- and foreign-currency issuer and senior unsecured debt ratings: AAA/Stable; short-term local- and foreign-currency issuer ratings: S-1+/Stable) on 22 September 2025.

This monitoring note does not constitute a credit-rating action, nor does it indicate the likelihood that Scope will conduct a credit-rating action in the short term. Information about the latest credit-rating action connected with this monitoring note along with the associated ratings history can be found on scoperatings.com.

Key rating factors

For the updated rating report accompanying this review, click here.

The AAA/Stable rating is underpinned by a well-integrated institutional framework, providing Norwegian municipalities strong fiscal equalisation, reliable funding, and coordinated policy implementation. The framework enables effective crisis response and supports an indicative municipal rating range of AAA to AA-, reflecting tight integration with the sovereign and a coherent sub-sovereign structure.

Trondheim’s AAA rating is further supported by several individual credit strengths including i) strong debt affordability, ii) ample liquidity, iii) resilient budgetary performance, iv) economic resilience, and v) robust governance quality. Furthermore, the city's dedication to climate action and its minimal carbon footprint compare favourably to other municipalities in Norway.

Challenges relate to i) a high debt stock, though backed by the municipality’s investment fund, and ii) limited budgetary flexibility. In line with other Norwegian municipalities, revenue flexibility is limited due to significant reliance on transfers and expenditure flexibility is constrained given that personnel expenses constitute a major portion of the city’s operating expenditure.

The Stable Outlook represents Scope’s view that risks to the ratings over the next 12 to 18 months are balanced.

The ratings could be downgraded if: i) Norway’s sovereign rating was downgraded; ii) reforms to the Norwegian municipal framework materially weakened municipalities’ integration in institutional arrangements; and/or iii) Trondheim’s individual credit profile weakened significantly.

The methodology applicable for the reviewed ratings and/or rating Outlooks (Sub-Sovereign Rating Methodology, 12 September 2025) is available on scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst: Alessandra Poli, Analyst

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