S&P applies BB to Volvo Car, notes

S&P said it assigned its BB long-term corporate credit rating to Volvo Car AB.

The outlook is positive.

At the same time, the agency assigned its BB issue rating and 3 recovery rating to Volvo's recently announced proposed benchmark senior unsecured notes due in 2021, subject to market conditions. The 3 recovery rating indicates an expectation of meaningful recovery (50%-70%, in the upper half of the range) in the event of a payment default.

S&P said the corporate credit ratings reflects its view that the company's business risk profile is supported by a well-established market position as a mid-sized car manufacturer, focused on Europe, China and the U.S., helped by a track record of safety, reliability, innovation, and technological expertise.

In 2015, Volvo sold about 500,000 cars, in three body types within the SUV/cross-over, sedan, and estate segments, across three family ranges: the 40, 60 and 90.

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