S&P: Volkswagen notes BBB-

S&P said it assigned a BBB- long-term issue rating to the proposed 5.5- and 10-year non-call, perpetual, optionally deferrable and subordinated hybrid notes to be issued by Volkswagen International Finance NV.

The notes are guaranteed by parent company Volkswagen AG, the agency said.

The completion and size of the transaction will be subject to market conditions, but S&P said it anticipates about €2 billion of total issuance.

The proceeds will be used for general corporate purposes, S&P said.

Including this new issue, the agency said it estimates a ratio of outstanding hybrids to adjusted capitalization of about 10%.

The issuance of the proposed hybrid notes does not affect the view of the equity content of the company's existing €7.5 billion of hybrid capital securities, S&P added.

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