Both VW Bank and VW Financial Services face pressure on margins and their asset quality is deteriorating in the current recessionary environment. We are lowering our ratings on VW Bank to 'A-/A-2'. The outlook is negative, reflecting the potential for further pressure on its stand-alone credit profile. We are affirming the 'A-' long-term rating on VW Financial Services and the outlook is negative, reflecting its unregulated captive finance company status to the VW group. On Aug. 31, 2009, Standard&Poor's Ratings Services revised to 'A-/A-2' from 'A/A-1' its long-term and short-term counterparty credit ratings on Germany-based Volkswagen Bank GmbH (VW Bank), a leading domestic retail and car finance company and one of Germany's largest direct banks. The ratings were
