Swedish Heavy Truck Manufacturer Scania 'K-1' Nordic Scale Rating Put On Watch Neg; 'A-' Ratings Remain On Watch Neg

On Oct. 12, 2015, we lowered our rating on Volkswagen AG (VW), Scania's parent, to 'A-' following the U.S. Environmental Protection Agency's announcement that VW had violated U.S. environmental standards, and kept the rating on CreditWatch Negative, indicating that we may lower the long-term ratings by up to two notches. Scania is a highly strategic entity within the VW group, in our view, implying that it cannot be rated higher than its owner. We are therefore placing our 'K-1' Nordic regional scale rating on Scania on CreditWatch negative and keeping our 'A-' long-term global scale rating on Scania on CreditWatch Negative. We are affirming our 'A-2' short-term global scale rating on Scania. We aim to resolve the CreditWatch within 90

...+ On Oct. 12, 2015, we lowered our rating on Volkswagen AG (VW), Scania's parent, to 'A-' following the U.S. Environmental Protection Agency's announcement that VW had violated U.S. environmental standards, and kept the rating on CreditWatch Negative, indicating that we may lower the long-term ratings by up to two notches. + Scania is a highly strategic entity within the VW group, in our view, implying that it cannot be rated higher than its owner. + We are therefore placing our 'K-1' Nordic regional scale rating on Scania on CreditWatch negative and keeping our 'A-' long-term global scale rating on Scania on CreditWatch Negative. + We are affirming our 'A-2' short-term global scale rating on Scania. + We aim to resolve the CreditWatch within 90 days, once we have resolved the CreditWatch on VW. STOCKHOLM (Standard & Poor's) Oct. 13, 2015--Standard & Poor's Ratings Services said today that it had placed its 'K-1' short-term Nordic regional scale rating on Sweden-based heavy truck manufacturer...

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