Moody's upgrades AB Volvo

Moody's Investors Service said it upgraded AB Volvo's long-term issuer rating to A2 from A3

"The upgrade to A2 reflects Moody's view that efficiency gains and cost-cutting initiatives over the past five years have lifted profitability and cash flow generation ability structurally to higher levels than historically combined with a lower volatility of operating performance in cyclical downturns," said Daniel Harlid, Moody’s lead analyst for AB Volvo, in a press release.

"The rating action further considers Volvo's conservative financial policy, which should support a solid positioning in the A2 rating category over the medium-term," Harlid added.

The outlook remains stable.

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