Research Update: Volvo (publ), AB Long-Term Rating Cut To ?BBB+? On Weakened Credit Protection And Tougher Market; Outlook Negative Apr 09
Standard & Poors, April 2009
Abstract
On April 29, 2009, Standard and Poor's Ratings Services lowered its long-term corporate credit rating on Sweden-based automotive group Volvo (publ), AB to 'BBB+' from 'A-', reflecting our view that lower cash generation in 2009 will likely lead to a considerably weaker financial risk profile in the medium term. The 'A-2' short-term rating was affirmed. The outlook is negative. The downgrade reflects a negative revision of our financial forecast for Volvo, in light of the rapidly deteriorating conditions and prospects in the global truck market, and very weak recent company performance. Even if the economic environment were to improve in late 2009 and 2010, we do not expect Volvo to improve its financial risk profile to an extent commensurate with...
Companies mentioned in this report are: AB Volvo,Volvo Group Finance Europe B.V.,Volvo Treasury AB,Volvo Treasury North America L.P.,Volvo Treasury Australia Proprietary Ltd.,Scania (publ.) AB,MAN SE
Action: Downgraded
Action: Outlook: Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
AB Volvo,Volvo Group Finance Europe B.V.,Volvo Treasury AB,Volvo Treasury North America L.P.,Volvo Treasury Australia Proprietary Ltd.,Scania (publ.) AB,MAN SE
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