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. We apply our parent-subsidiary criteria in our assessment of Scania's credit quality because of the relationship between Scania and its Germany-based parent, Volkswagen AG (VW; A-/Stable/A-2). At the end of 2011, VW owned 89% of the voting rights in
