ABB » Topics » Credit ratings

This excerpt taken from the ABB 20-F filed Mar 10, 2009.

Credit ratings

        Credit ratings are assessments by the rating agencies of the credit risk associated with our company and are based on information provided by us or other sources that the rating agencies consider reliable. Higher ratings generally result in lower borrowing costs and increased access to capital markets. Since April 2006, our ratings are of "investment grade" which is defined as Baa3 (or above) from Moody's and BBB- (or above) from Standard & Poor's.

        At December 31, 2007, our long-term company ratings were Baa1 and A-, from Moody's and Standard & Poor's, respectively, as were our long-term unsecured debt ratings. On January 21, 2008, Moody's announced an upgrade in our long-term ratings from Baa1 to A3. Our ratings have remained unchanged during the remainder of 2008 and to date.

This excerpt taken from the ABB 20-F filed Mar 19, 2008.

Credit ratings

        Credit ratings are assessments by the rating agencies of the credit risk associated with our Company and are based on information provided by us or other sources that the rating agencies consider reliable. Higher ratings generally result in lower borrowing costs and increased access to capital markets. Since April 2006, our ratings are again of "investment grade" that would be represented by Baa3 (or above) from Moody's and BBB- (or above) from Standard & Poor's.

        In April 2007, Standard & Poor's increased our corporate rating from BBB+ to A- and our long-term unsecured debt from BBB to A-. The ratings from Moody's remained unchanged during 2007. At December 31, 2007, our long-term company ratings were Baa1 and A-, from Moody's and Standard & Poor's, respectively, as was our long-term unsecured debt. This compares to Moody's and

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Standard & Poor's ratings of Baa1 and BBB+, respectively, for our long-term company ratings and Baa1 and BBB for our long-term unsecured debt at December 31, 2006.

        On January 21, 2008, Moody's announced an upgrade in our long-term ratings from Baa1 to A3.

This excerpt taken from the ABB 20-F filed Apr 18, 2007.

Credit ratings

Credit ratings are assessments by the rating agencies of the credit risk associated with our company and are based on information provided by us or other sources that the rating agencies consider reliable. Higher ratings generally result in lower borrowing costs and increased access to capital markets.

At December 31, 2006, our long-term company ratings were Baa1 and BBB+ (our long-term unsecured debt was rated Baa1 and BBB)  from Moody’s and Standard & Poor’s, respectively, compared to Ba2 and BB+ (our long-term unsecured debt was rated Ba2 and BB-) from Moody’s and Standard & Poor’s, respectively, at December 31, 2005. A number of rating increases took place during 2006. In April 2006, Moody’s increased both our corporate and our long-term unsecured debt ratings from Ba2 to Baa3 and then in December 2006, further increased these ratings from Baa3 to Baa1. Similarly, in April 2006, Standard & Poor’s increased our corporate rating from BB+ to BBB-, and our long-term unsecured debt from BB- to BB+, and then in May 2006, increased our corporate rating to BBB+ and our long-term unsecured debt to BBB.

The increases in our ratings during 2006 mean that our ratings are again of “investment grade” that would be represented by Baa3 (or above) and BBB- (or above) from Moody’s and Standard & Poor’s, respectively.

This excerpt taken from the ABB 20-F filed Apr 19, 2006.

Credit ratings

Credit ratings are assessments by the rating agencies of the credit risk associated with our company and are based on information provided by us or other sources that the rating agencies consider reliable. Lower ratings generally result in higher borrowing costs and reduced access to capital markets.

As of December 31, 2005 and 2004, our long-term company ratings were Ba2 and BB+ (our long-term unsecured debt was rated Ba2 and BB-) from Moody’s and Standard & Poor’s, respectively. On April 3, 2006, Standard & Poor’s raised our long-term company rating to BBB- from BB+ and our long-term unsecured debt from BB- to BB+. On April 12, 2006, Moody’s raised our long-term debt rating from Ba2 to Baa3 with positive outlook and withdrew the corporate family rating (that relates only to non-investment grade companies). Baa3 (or above) and BBB- (or above) from Moody’s and Standard & Poor’s, respectively, represent “investment grade” ratings.

An “investment grade” is represented by Baa3 (or above) and BBB- (or above) from Moody’s and Standard & Poor’s, respectively. As a result of Standard & Poor’s raising our rating in April 2006, our long-term company rating from Standard& Poor’s is that of an “investment grade” company. A rating below investment grade is reflected in generally higher interest costs on borrowings. However, in 2005, we

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achieved terms on our $2 billion credit facility that are similar to those of a company with an “investment grade” rating.

This excerpt taken from the ABB 20-F filed May 27, 2005.

Credit ratings

        Debt ratings are an assessment by the rating agencies of the credit risk associated with our company and are based on information provided by us or other sources that the rating agencies consider reliable. Lower ratings generally result in higher borrowing costs and reduced access to capital markets.

        At December 31, 2002, after a series of rating downgrades during 2002, our long-term company ratings were Ba3 and BBB- (our long-term unsecured debt was rated B1 and BB+) from Moody's and Standard & Poor's, respectively. On January 13, 2003, Standard & Poor's further lowered our long-term company rating to BB+ and our long-term unsecured debt to BB-. In late October 2003, both rating agencies changed the outlook on these ratings to positive from negative. On May 18, 2004, Moody's increased our long-term company rating from Ba3 to Ba2 and our long-term unsecured debt from B1 to Ba2, both with stable outlook. On December 6, 2004, Standard & Poor's changed the outlook on these ratings from positive to stable. Our ratings are currently below "investment grade" that would be represented by Baa3 (or above) and BBB- (or above) from Moody's and Standard & Poor's, respectively. A rating below investment grade is reflected in higher interest costs on borrowings. Until our credit rating has returned to investment grade, we do not anticipate having the ability to access the commercial paper markets.

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