A number of international credit-rating institutes during the past month have confirmed AB Volvo’s credit rating. Most recently it was Moody’s, which last week confirmed AB Volvo’s short-term credit rating and long-term and raised the outlook. At the same time, the credit rating is recognition of the strategy of focusing on commercial vehicles that Volvo adopted since the sale of Volvo Cars.
Moody’s confirms AB Volvo’s short-term credit rating of P-2 and long-term A3 and concurrently raises the outlook to stable. Moody’s expects that Volvo will continue to increase efficiency in its operations, strengthen competitiveness and improve financial strength.
Canadian DBRS, Dominion Bond Rating Services, confirmed the long-term credit rating A (low) and increases outlook for the Volvo Group from negative to stable. Among other points, DBRS refers to the Volvo Group’ strong balance sheet and rising profitability. At the same time, Japanese R&I, Rating and Investment Information, confirmed the long-term rating of A.
For Volvo, the effects of the ratings include increased possibilities to implement cost-efficient financing of operations in the international credit markets.
“The ratings confirm Volvo’s business strategy of focusing on commercial vehicles, as well as the fact that Volvo has strong finances,” says Volvo’s CFO Stefan Johnsson.
March 9, 2004
For further information, please contact Mårten Wikforss, +46 31-66 11 27