AB Volvo: Rating Report

On May 4, 2022, DBRS Limited (DBRS Morningstar) changed the trend on the Issuer Rating of AB Volvo (Volvo or the Company) to Positive from Stable and confirmed the rating at A (low). The rating remains supported by the Company’s sound business risk assessment as one of the world’s largest truck manufacturers and a major global player in construction equipment. Additionally, following softer earnings in 2020 (substantially attributable to adverse effects of the global progression of the Coronavirus Disease), Volvo's financial performance rebounded solidly in 2021 through Q1 2022 in line with meaningful recoveries across most of the Company's key end markets (with the exception of China). Amid Volvo's ongoing conservative financial policy, the improved earnings performance has caused the Company's financial risk assessment to attain strong levels in the context of the currently assigned rating.