Volkswagen Financial Services AG

VW FS conducts almost all the group's financial and mobility activities not subject to European banking regulation; while Volkswagen Bank GmbH (BBB+/Stable/A-2) conducts activities that fall under European Central Bank (ECB) supervision. VW FS' activities include international banking and European non-ECB regulated businesses. Its product offering includes car financing, leasing, dealer financing, insurance, and other services. The financed portfolio not only includes new cars from VW-brands but also an increasing number of foreign brands and used cars. Although not yet material from a profitability standpoint, other mobility services include car sharing as well as parking, refueling, and charging, which underline VW FS' ambitions as a mobility services provider beyond the typical captive finance activities. The company's relevance to its parent

...Germany-based Volkswagen Financial Services AG (VW FS) will maintain its established franchise as a fully owned captive finance subsidiary of VW. The ratings on VW FS are based on S&P Global Ratings' view of the company's integral role to the group's strategy, which we reflect in its core group status to VW (###+/Stable/A-2), one of the world's largest auto manufacturers. Our assessment implies that we expect VW FS would receive support from VW under any foreseeable circumstances. VW FS has a very important strategic position within the VW Group of promoting the sale of the group's products through financial services and generating income through related services. We do not expect this role to change in the foreseeable future, but rather be strengthened by its responsibility for developing the group's growing mobility services. VW FS conducts almost all the group's financial and mobility activities not subject to European banking regulation; while Volkswagen Bank GmbH (###+/Stable/A-2)...

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