We have revised our outlook on Scania's parent Volkswagen AG (VW), to stable from negative, due to the company's stabilized performance. We align our outlook on Scania with that on VW because VW controls 100% of Scania. We are therefore revising our outlook on Scania to stable from negative and affirming our 'BBB+/A-2' ratings. The stable outlook reflects the outlook on VW and our expectation that Scania will maintain low debt and positive free operating cash flow (excluding the captive finance operations) over 2018-2020. On Nov. 8, 2017, S&P Global Ratings revised its outlook on Sweden-based heavy vehicle manufacturer Scania AB (publ.) to stable from negative. We also affirmed our 'BBB+/A-2' long- and short-term corporate credit ratings, 'K-1' Nordic regional
