DBRS Confirms AB Volvo & Volvo Treasury Canada Inc.

Dominion Bond Rating Service (“DBRS”) has today confirmed the ratings of AB Volvo (“Volvo” or the “Company”) at R-1 (low) and A (low) with Stable trends.

The ratings confirmation incorporates Volvo’s announcement that it will acquire a 13% stake in Nissan Diesel (“Nissan”) from Nissan Motor Company Limited (“Nissan Motor”) for a purchase price of SEK1.5 billion (US$195 million). Volvo also has an option to acquire Nissan Motor’s remaining 6% stake in Nissan within four years. The acquisition makes Volvo the largest shareholder in Nissan.

With year-end December 31, 2005, cash and equivalents of SEK8.1 billion and marketable securities of SEK28.8 billion, the transaction is easily financed by Volvo with minimal impact on the Company’s credit profile. The acquisition allows Volvo to expand into Asia, especially in the Chinese market where Nissan has a partnership with Nissan Motor’s Chinese truck venture Dongfeng, and where demand for commercial vehicles is outpacing growth in Volvo’s primary market of Western Europe.

Note:
The ratings of Volvo Treasury Canada Inc. are based on parent and guarantor, AB Volvo.
Issuer Ratings apply to all general senior unsecured obligations of the issuer in question.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

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