S&P upgrades Volvo Car

S&P said it raised to BB+ from BB the long-term corporate credit rating on Volvo Car AB.

The outlook is stable.

The agency also said it raised the ratings on Volvo's senior unsecured bonds to BB+ from BB, which is in line with the corporate credit rating.

The recovery rating of 3 is unchanged and indicates 50% to 70% expected default recovery.

The upgrades reflect a view that Volvo is making good progress in strengthening its competitive position and business profile through successful model launches, which are replacing its model line-up and enabling the company to reposition itself as a premium car manufacturer, the agency said.

Also supportive is Volvo's progress in strengthening its profitability, S&P added.

These positive factors are partly offset by slightly lower volumes in the sedan and estate segments, the agency said.

© 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.