Moody’s upgrades Volvo to Baa1

Moody's Investors Service said it upgraded AB Volvo's long-term issuer rating to Baa1 from Baa2 and affirmed the Prime-2 (P-2) short-term issuer rating.

The outlook remains stable.

"The upgrade to Baa1 reflects the continuous and strong improvements in Volvo's financial performance and credit metrics and Moody's view that these metrics can be sustained even in periods of weaker demand for its products,” Falk Frey, Moody’s senior vice president and lead analyst for Volvo, said in a news release.

"Sustainably improved profitability due to the company's recent cost cutting program and a financial policy focused on debt reduction resulted in credit metrics that place Volvo solidly in line with a Baa1 rating."

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