The ratings on Volkswagen Bank GmbH (VW Bank) are based on its status as a core subsidiary of its ultimate parent, Volkswagen AG (VW; A+/Stable/A-1) and reflect its strategic importance for and close integration into the operations of its parent. Due to the close organizational and business ties between VW's several finance and leasing subsidiaries, which, are combined under the roof of VW Bank's 100% owner, Volkswagen Financial Services AG (VWFS; A+/Stable/A-1), Standard&Poor's analysis focuses on both VW Bank and VWFS. The ratings also reflect VW Bank' sound asset quality, profitability, and capitalization, which mitigate concerns about its limited business diversification. Furthermore, Standard&Poor's regards VW Bank and VWFS as a captive finance company, which together with
