Fitch ups Volvo

Fitch Ratings said it upgraded AB Volvo's long-term issuer default rating and senior unsecured rating to BBB from BBB- and short-term issuer default rating to F2 from F3.

The outlook is stable.

The upgrades are chiefly driven by the sharp recovery of Volvo's main truck and construction equipment end-markets and the solid rebound in the group's profitability and key credit metrics, Fitch said.

Demand for heavy-trucks has rebounded strongly in the United States and Europe since the low point reached in mid-2009 at the height of the economic recession, the agency said.

However, Fitch cautioned that economic conditions are not entirely back to pre-crisis levels and renewed turbulence could put pressure on truck sales, Fitch said.

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