Moody's Rating

ABB Ltd
19 December 2001




ABB maintains strong A ratings with Moody's -
short-term Prime-1 ratings confirmed

Company committed to reducing Its net debt position in 2001 and 2002

Zurich, Switzerland, Dec 19, 2001 - Moody's Investors Services today reduced 
ABB's long-term ratings from Aa3 to A2, while the short-term Prime-1 ratings 
were confirmed.

'The confirmation of our Prime-1 short-term debt ratings is a clear reflection 
of our solid liquidity position. We have substantial cash and liquid assets in 
our balance sheet', said ABB president and CEO Jorgen Centerman.

He added that ABB remains committed to maintaining a strong financial profile. 
As announced on October 23, ABB aims to reduce net debt by up to US$ 1 billion 
in the quarter of this year.

The debt reduction plan includes a rigorous cash flow generation initiative in 
all operating units, aimed at ensuring and accelerating the traditionally high 
cash flow generation in the fourth quarter. These efforts are being complemented
by asset sales, such as financial receivab1es and real estate.

ABB said the company plans to reduce its net debt position further in 2002. The 
recently announced divestment of the air handling business for US$ 225 million 
is expected to be closed early next year.

'Given the fundamental strength or out businesses, we are also sticking to our 
growth and EBIT margin targets,' Centerman said. Revenues are targeted to grow 
on average by 6 percent annually through 2005 (in local currencies, excluding 
major acquisitions and divestments). The EBIT margin is expected to reach 9-10 
percent by 2005.

The implementation of the cost cutting program announced in July this year is 
progressing according to plan, ABB said. The company aims to reduce annual 
costs by approximately US$500 million on an annual basis.


For more information please contact:

Media Relations 
ABB Corporate Communications, Zurich
Thomas Schmidt 
Tel:[phone] 
Fax:[phone] 
[e-mail]

Investor Relations
Switzerland: Tel.[phone] 
Sweden: Tel. [phone] 
USA: Tel.[phone]
investor [e-mail]