Moody’s lifts AB Volvo view to stable

Moody’s Investors Service said it changed to stable from negative the outlook on AB Volvo.

Moody’s also said it affirmed the company’s Baa2 long-term issuer rating, along with the prime-2 short-term issuer rating, Baa2 long-term senior unsecured debt ratings and P-2 short-term ratings of its rated guaranteed subsidiaries.

The agency also said it affirmed the Ba1 long-term rating assigned to the junior subordinated hybrid securities issued by Volvo Treasury AB, which are guaranteed by Volvo.

The outlook revision reflects the recovery in the European truck market, as well as the company’s continued efforts to strengthen its cost base and competitiveness, Moody’s said.

These factors, together with very positive foreign-currency movements, have boosted Volvo’s profitability and enhanced its financial ratios for the first half of 2015, the agency said.

The outlook revision reflects the improvements in Volvo’s operational performance during the first half of 2015, supported by very positive currency effects and a recovery in the European truck market, Moody’s said.

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