ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Core subsidiary of Volkswagen Financial Services AG with integral integration into Volkswagen AG's (VW's) captive finance value chain, with clear strategic objectives. Monoline business model with dependence on VW AG's franchise, reputation, and credit profile. Very strong capitalization and sound earnings base. Business and earnings concentration on car financing, leasing, and related mobility services. Broad business diversification across European markets with 65% dominance in Germany. Increased dependence on wholesale funding markets following integrating leasing business. VW completed the reorganization of its captive finance entities on July 1, 2024, aligning its newly created Volkswagen Financial Services AG (VWFS Europe) with its core
