Moody’s rates Volvo securities Ba1

Moody's Investors Service said it assigned a provisional Ba1 long-term rating to the proposed new subordinated hybrid securities to be issued by Volvo Treasury AB and guaranteed by AB Volvo (Baa2 negative).

The size and completion of the transaction are subject to market conditions.

The outlook is negative.

Moody’s said the rating assigned to the proposed new subordinated fixed to reset rate capital securities to be issued by Volvo Treasury and guaranteed by Volvo is two notches below Volvo's Baa2 long-term issuer rating. The notching of the proposed instruments reflects their characteristics as very long-dated, subordinated and senior only to the company's common shares, allowing for the deferral of the coupons on a cumulative basis and without coupon step-ups before year 10 and limited to 100 basis points in total.

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