Moody’s upgrades Volvo Cars credit rating

• Rating agency Moody’s Investors Service (Moody’s) today upgraded its corporate credit rating for Volvo Cars to Ba1 from Ba2, with a stable outlook.

• “The upgrade of Volvo’s ratings was driven by continued improvements in its operating performance and credit metrics and our expectation that this trend will continue in the current fiscal year founded by further successful new model launches," says Falk Frey, a Senior Vice President and lead analyst for Volvo Car.

• Moody’s anticipates the positive trend in unit sales and revenues to continue based on the full year availability of the XC60 as well as the introduction of the XC40, Volvo’s first SUV in the compact segment.

• Moody’s stated that Volvo Car’s liquidity profile is very good and that the company’s existing resources, as of 31 March 2018, would be sufficient to cover its corporate cash requirements over the next 12 months including sustained high levels of capital expenditures, intra year working capital needs and potential dividend payments.

Note to editors:

• Full report from Moody's available here

This information is information that Volvo Car AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16:05 on May 02, 2018.

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Volvo Car Group in 2017

For the 2017 financial year, Volvo Car Group recorded an operating profit of 14,061 MSEK (11,014 MSEK in 2016). Revenue over the period amounted to 210,912 MSEK (180,902 MSEK). For the full year 2017, global sales reached a record 571,577 cars, an increase of 7.0 per cent versus 2016. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.

About Volvo Car Group

Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 571,577 cars in 2017 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.

In 2017, Volvo Cars employed on average approximately 38,000 (30,400) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).