...Fitch's Stabilisation of the rating Outlook in June 2017 reflects the greater clarity about the operational and financial effect of the diesel issue. Fitch acknowledges that risks of further legal actions have not disappeared but believes that these risks have become manageable at the current rating level and incorporated in the ratings. In particular, we believe that the group could accommodate several billion euros in additional fines and/or recall and repair costs and still sustain its current ratings. In addition, the group has demonstrated a strong resilience since the start of the emissions crisis in late 2015 and we expect only a limited impact on credit metrics at the exit point by 2019-2020, when the bulk of cash outflows will have hit free cash flow (FCF) and net debt. Fitch believes that all car manufacturers now face financial and operational risks related to emission legislation, regulators' investigations and customers' complaints. These risks and their rating impact will...
