Volkswagen AG and Subs' Long-Term Rtgs Cut to 'A'; Short-Term Rtgs Affirmed; Outlook Stable Jul 03
- ID: 1710294
- July 2003
- Standard & Poors
NEW YORK (Standard & Poor's) July 14, 2003--Standard & Poor's Ratings Services said today it lowered its long-term corporate credit ratings on Germany-based carmaker Volkswagen AG (VW) and related entities, including Volkswagen Financial Services AG (VWFS) and Volkswagen Bank GmbH (VW Bank), to 'A' from 'A+'. At the same time, the 'A-1' short-term ratings on VW and related entities were affirmed. The outlook is stable. "The downgrades reflect Standard & Poor's expectation that VW's profitability and free cash flow generation will remain moderate in 2003 and beyond, owing to heavy capital expenditures and product-launch costs related to new models," said Standard & Poor's credit analyst Maria Bissinger. "Although the cost-cutting measures implemented are expected to yield an average improvement of...
Companies mentioned in this report are:
- Volkswagen AG
- Volkswagen Financial Services AG
- Volkswagen Bank GmbH
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