The ratings on Sweden-based truck and bus manufacturer Scania (publ.) AB reflect the group's "satisfactory" business profile and "modest" financial risk, according to Standard&Poor's Ratings Services' criteria. The ratings are supported by Scania's very strong profitability in the global truck industry. However, they also reflect the strong cyclicality of the group's operating earnings. The group's truck and bus businesses benefit from leading market positions, up-to-date product lines, and the highest degree of component commonality in the global truck industry. Volkswagen AG (VW; A-/Positive/A-2) owns a controlling stake in Scania. We therefore apply a top-down approach to rating Scania, in line with our parent-subsidiary criteria. We assess Scania's stand-alone credit profile at 'a-'. The corporate credit ratings are capped
