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
-
The Koenigsegg Jesko Has An Amazing Engine
It is hard to believe that this is a vehicle in “serial” production with such extraordinary powertrain performance
-
Increasing Use of Structural Adhesives in Automotive
Can you glue a car together? Frank Billotto of DuPont Transportation & Industrial discusses the major role structural adhesives can play in vehicle assembly.
-
Choosing the Right Fasteners for Automotive
PennEngineering makes hundreds of different fasteners for the automotive industry with standard and custom products as well as automated assembly solutions. Discover how they’re used and how to select the right one. (Sponsored Content)
