S&P rates Volkswagen bonds BBB

Standard & Poor's said it assigned its BBB long-term issue rating to the proposed three-year mandatory convertible bonds to be issued by Volkswagen International Finance NV, a subsidiary of Volkswagen AG. The parent is guaranteeing the bonds.

The total amount of the bond issuance is expected to reach €2 billion.

S&P said the two-notch differential between its BBB rating on the proposed bonds and its A- corporate credit rating on Volkswagen reflects a one-notch differential for the proposed bonds' subordination and a further one-notch differential for the optional deferability of interest.

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