Standard & Poor's Ratings

ABB Ltd
6 September 2000


ABB Corporate Communications, Zurich     ABB Investor Relations, Zurich
John Fox                                 Pia Irell
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ABB Group rating affirmed by Standard & Poor's:
Outlook positive
Agency cites shift to knowledge and service, growth potential

Zurich, Switzerland, September 6, 2000 - Global technology group ABB said today
that Standard & Poor's has affirmed its long-term corporate credit rating of AA-
and changed the ratings outlook from stable to 'positive.'

Standard & Poor's said the new ratings outlook follows demonstrated improvements
across ABB's business segments since adapting the group structure in August
1998.  The agency also said ABB has a low level of financial indebtedness and a
conservative financial profile.

'Since the beginning of 1999, ABB has consequently been transforming its
business portfolio, aiming to increase value creation by shifting to higher
value-added, more knowledge-based activities and away from very asset intensive
businesses,' the agency said.

'The group's strategy aims to increase its reliance on IT-driven technology
solutions, as well as strengthening its positions in high-tech systems and
service operations,' the agency added, citing several milestones in ABB's
transformation.  The milestones include ABB's divestiture of the traditional
power generation business earlier this year, the divestiture of the 50 percent
stake in the rail joint venture Adtranz and the acquisition of Alfa Laval
Automation and Elsag Bailey Process Automation.

ABB president and CEO Goran Lindahl said, 'The positive ratings outlook is
another confirmation that we are moving in the right direction.  We are pleased
to see that our strong efforts to create more shareholder value are being
recognized.'

Standard & Poor's added that ABB's management has a strong track record of
maintaining group profitability at a good level, considering the difficult
market conditions of some operations.

'The business profile restructuring, coupled with an overall favourable economic
climate, should support management in achieving its target of 6 percent - 7
percent average annual growth during 2000-2003 and an operating margin of 12
percent by 2003,' said the agency, adding that ABB has under certain
circumstances some financial flexibility to carry out a more aggressive growth
strategy in the next few years.

The ABB Group serves customers in power transmission and distribution;
automation; oil, gas, and petrochemicals; building technologies; and in
financial services.  With novel IT applications, tailored software solutions,
growing eBusiness and a fast-expanding knowledge and service base, ABB is
building links to the new economy.  The ABB Group employs about 160,000 people
in more than 100 countries.