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Volkswagen AG and Subs' Long-Term Rtgs Cut to 'A'; Short-Term Rtgs Affirmed; Outlook Stable Jul 03 Product Image

Volkswagen AG and Subs' Long-Term Rtgs Cut to 'A'; Short-Term Rtgs Affirmed; Outlook Stable Jul 03

  • ID: 1710294
  • July 2003
  • Standard & Poors

FEATURED COMPANIES

  • Volkswagen AG
  • Volkswagen Bank GmbH
  • MORE

Abstract
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

Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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- Volkswagen AG
- Volkswagen Financial Services AG
- Volkswagen Bank GmbH

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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