The ratings on Dutch bank LeasePlan Corporation N.V. are supported by its leading market position in operational car leasing and fleet management, wide geographic diversification, high and recurring revenues generation, and sound asset quality. The ratings remain constrained, however, by the bank's concentration on one single business segment, cost-intensive business model, and reliance on wholesale funds to finance its lease portfolio. LeasePlan is 50% owned by Germany-based Volkswagen automotive group (VW, A-/Stable/A-1), through Volkswagen Bank GmbH (VW Bank, A/Stable/A-2), and two long-term Gulf-based investors, each owning 25%. The ratings on LeasePlan reflect its stand-alone creditworthiness, however, due to operational and financial independence from VW, the presence of large minority shareholdings, and LeasePlan's regulated status as a bank under Dutch law.
