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Summary: Volkswagen AG Dec 09
Standard & Poors, December 2009
The ratings on Germany-based automaker Volkswagen AG (VW) reflect its strong business risk profile and modest financial risk profile, according to Standard & Poor's Ratings Services methodology. The strong business risk profile is supported by VW's leading European market position, its global brand recognition, comprehensive product mix, and the contribution of its financial services operation. These balance VW's exposure to the oversupplied, cyclical, and competitive automotive industry. The financial risk profile is supported by VW's low debt leverage and good financial flexibility, which balance its relatively weak cash generation and corporate governance-related financial policy, as well as funding execution risks. VW is currently pursuing a variety of growth opportunities. We view a proposed 19.9% acquisition of Japanese car-manufacturer Suzuki Motor...
Companies mentioned in this report are: Volkswagen AG
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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.