S&P rates Volvo notes BB+

Standard & Poor’s said it assigned a BB+ long-term issue rating to the subordinated hybrid notes to be issued by AB Volvo through its subsidiary, Volvo Treasury AB.

The proceeds will be used to guarantee the proposed notes, which are in two tranches, one non-callable for 5.5 years and the other non-callable for 8.25 years, the agency said.

Volvo has the option to defer interest payments, S&P said.

The size of the transaction will be subject to market conditions and the proceeds will be used for general corporate purposes, the agency said.

The ratings reflect a notching down from the company’s BBB long-term rating due to its investment-grade category and the optional deferral of interest, S&P said.

There is a relatively low likelihood that Volvo will defer interest payments on the proposed notes, however, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.