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 Integral strategic and operational integration into Volkswagen AG's (VW's) captive finance value chain. Monoline business model with dependence on VW's franchise, brands, and reputation. Very strong capitalization and predictable earnings base. Business, asset quality, and earnings concentration on car financing, leasing, and related mobility services. Broad business diversification across European markets with 65% dominance in Germany. Higher dependence on wholesale funding markets following integrating leasing business. Volkswagen Bank GmbH (VW Bank) is essential for VW's"MOBILITY2030"captive finance strategy. VW completed the reorganization of its captive finance entities on July 1, 2024, aligning its then newly created Volkswagen Financial Services AG
