Summary: Volkswagen Financial Services AG Feb 06
- ID: 1710691
- February 2006
- Standard & Poors
The ratings on Germany-based Volkswagen Financial Services AG (VWFS) are based on its unchallenged status as a core subsidiary of Volkswagen AG (VW; A-/Negative/A-2) and reflect VWFS' strategic importance for and close operational integration into its parent. Furthermore, VWFS is also regarded as a captive finance company. In addition, the ratings also reflect VWFS' sound asset quality, profitability, and capitalization, which mitigate concerns about VWFS' limited business and earnings diversification and concentration risks in automotive cycles, and reliance on VW group branding. VWFS (€40 billion assets mid-year 2005) is the holding company for several of VW group's European and Asia-Pacific finance and leasing subsidiaries, of which Volkswagen Bank GmbH (VW Bank; A-/Stable/A-2) is the largest German subsidiary, and also the...
Companies mentioned in this report are:
- Volkswagen Financial Services AG
- Volkswagen AG
- LeasePlan Corporation N.V.
- Volkswagen Bank GmbH
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