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Bulletin: Volkswagen Unaffected By Proposed Suzuki Motor Stake Dec 09
Standard & Poors, Dec 2009
Abstract
STOCKHOLM (Standard & Poor's) Dec. 10, 2009--Standard & Poor's Ratings Services said today that the rating and outlook on Volkswagen AG (A-/Negative/A-2) are unaffected at present by the proposed purchase of a 19.9% stake in Japanese car manufacturer Suzuki Motor Corp. (not rated) announced on Dec. 8, 2009. Using available information, we currently view the impact of the -1.7 billion acquisition on Volkswagen's credit quality as neutral, taking into account the possible strategic benefits and the reported financial details. We believe that an alliance with Suzuki Motor could strengthen Volkswagen's position in the small car segment, and provide important inroads into emerging Asian markets, particularly India. We believe there may be a slight negative impact on Volkswagen's financial risk profile...
Companies mentioned in this report are: Volkswagen AG
Action: Bulletin
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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