Mexican Media Brands
Fitch Raises VW Debt Rating to “Stable”
Fitch Ratings has raised its outlook for Volkswagen AG debt to “stable” from “negative” after concluding that risks associated with the carmaker’s diesel emission cheating scandal now appear to be clearly defined.
#economics
Share
Fitch Ratings has raised its outlook for Volkswagen AG debt to “stable” from “negative” after concluding that risks associated with the carmaker’s diesel emission cheating scandal now appear to be clearly defined.
The rating service, which lowered its VW rating from A in November 2015, did not change its current BBB+ rating for VW’s long-term debt. Under Fitch’s ratings, BBB+ is three steps above non-investor-grade “junk” status.
VW so far has allocated €22.6 billion ($25.7 billion) to cover fines, repairs and customer compensation payments associated with some 11 million diesel-power vehicles it rigged to evade emission laws. Most payouts will occur in 2019-2020, according to the rating service.
Fitch praises the carmaker’s financial resilience since the cheating was revealed in September 2015. The service estimates VW could cover “several billion euros” of additional scandal-related payments without eroding its current rating.
RELATED CONTENT
-
Special Report: Toyota & Issues Electric
Although Toyota’s focus on hybrid powertrains at the seeming expense of the development of a portfolio of full battery electric vehicles (BEVs) for the market could cause some concern among those of an environmental orientation, in that Toyota doesn’t seem to be sufficiently supportive of the environment, in their estimation. Here’s something that could cause a reconsideration of that point of view.
-
On The Jeep Grand Cherokee, 2022 Nissan Pathfinder, and More
An inside look at the Detroit Assembly Complex-Mack; a innovative approach to waste-free, two-tone painting; why a forging press is like an F1 car; and other automotive developments.
-
On Automotive: An All Electric Edition
A look at electric vehicle-related developments, from new products to recycling old batteries.
