Summary: Volkswagen Financial Services AG

Core subsidiary of global car manufacturer Volkswagen. Broad geographic diversification. Sound financial profile, with stable earnings. Business concentration on car financing. Dependence on Volkswagen's franchise and funding support. Wholesale funding profile. S&P Global Ratings' Stable outlook on Germany-based captive finance company Volkswagen Financial Services AG (VW FS) mirrors that on its parent, carmaker Volkswagen AG (VW; BBB+/Stable/A-2), on a 12-24 month horizon. A revision of the outlook on VW would result in a similar action on VW FS. We could lower our ratings on VW FS if we saw a weaker commitment from VW to support its subsidiaries, which could lead us to reassess our view of VW FS as a core entity of the VW group. We consider such

...S&P Global Ratings' Stable outlook on Germany-based captive finance company Volkswagen Financial Services AG (VW FS) mirrors that on its parent, carmaker Volkswagen AG (VW; ###+/Stable/A-2), on a 12-24 month horizon. A revision of the outlook on VW would result in a similar action on VW FS. We could lower our ratings on VW FS if we saw a weaker commitment from VW to support its subsidiaries, which could lead us to reassess our view of VW FS as a core entity of the VW group. We consider such a scenario as very remote, but it could happen if VW relinquished its majority ownership in VW FS or if the captive finance operations ceased to be pivotal to the VW group's worldwide strategy....

Summary