On Dec. 1, 2015, we lowered our ratings on Volkswagen AG (VW AG) to 'BBB+' from 'A-'. We consider Volkswagen Financial Services (VW FS) a core subsidiary of VW AG and therefore equalize the ratings with those on VW AG. Consequently, we are lowering the rating on VW FS to 'BBB+' from 'A-'. At the same, time we are affirming the 'A-/A-2' ratings on VW Bank GmbH, which we now consider an insulated subsidiary of VW AG. The negative outlook on VW FS mirrors that on VW AG and indicates that we may lower the long-term ratings on VW FS by one notch within the next 12-24 months if we take a similar action on the parent. The negative outlook
