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Research Update: Volkswagen AG Jun 04

  • ID: 1710407
  • June 2004
  • Standard & Poors

FEATURED COMPANIES

  • Volkswagen AG
  • Volkswagen Bank GmbH
  • MORE

Abstract
On June 15, 2004, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Germany-based automaker Volkswagen AG (VW) and related entities, including Volkswagen Financial Services AG (VW FS) and Volkswagen Bank GmbH (VW Bank) to 'A-' from 'A', owing to its weakening profitability. At the same time, the short-term ratings were lowered to 'A-2' from 'A-1'. The outlook is negative. The downgrades reflect Standard & Poor's expectation that VW's profitability and free cash flow generation will remain weak in the medium term, despite the additional cost-cutting and revenue-enhancement measures outlined in the group's "ForMotion" program. We are skeptical whether this program is far-reaching enough to strengthen group performance sufficiently to allow VW to return to the profitability...

Companies mentioned in this report are:
- Volkswagen AG
- Volkswagen Group Services S.A.
- Volkswagen Financial Services AG
- Volkswagen Bank GmbH
- Volkswagen Insurance Co. Ltd.

Action: Downgraded
Action: Outlook: Negative
Action: Removed From CreditWatch

Standard and Poors RatingsXpress Credit Research provides in-depth READ MORE >

Note: Product cover images may vary from those shown

- Volkswagen AG
- Volkswagen Group Services S.A.
- Volkswagen Financial Services AG
- Volkswagen Bank GmbH
- Volkswagen Insurance Co. Ltd.

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

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