... S&P Global Ratings' negative outlook on Germany-based Volkswagen Bank GmbH (VW Bank) incorporates a one-in-three possibility, within the next two years, that VW Bank's much enlarged core businesses, which host the European banking activities of global car manufacturer Volkswagen AG (VW; ###+/Stable/A-2), could attract a higher share of greater economic risks outside German markets. If the bank's average economic risk exposures increase more than we currently anticipate, we would likely lower our long-term rating on VW Bank by one notch. We currently consider the rating on the parent to be a floor for our rating on VW Bank, as long as the bank remains a core subsidiary. We could revise the outlook to stable if we anticipated that VW Bank's European banking activities and related economic risk would remain commensurate with the current rating, and the bank would maintain very strong capitalization to buffer risks....
