Volvo gets junk rating

STOCKHOLM: Sweden’s Volvo Cars said on Friday it received a junk credit rating from the Standard and Poor’s (S&P) agency as it seeks to sell $500 million euros ($571 million) of bonds to investors. S&P gave the company a ‘BB’ rating, the second-highest note in the ‘speculative’ category, but added a positive outlook. Tapping the corporate bond market for the first time in its 89-year history, Volvo will begin presentations for investors on Monday, a process known as ‘roadshow’. Truck manufacturer Volvo Group in 1999 sold Volvo Cars to Ford, which then sold on the Swedish carmaker to China’s Geely in 2010. Volvo Cars this week reported a net profit of 2.07 billion kroner ($255 million) for first quarter on sales of 41.8 billion kroner.