DBRS raises Volkswagen

DBRS said it upgraded Volkswagen AG to A (low) from BBB (high).and upgraded VW Credit Canada, Inc.’s senior unsecured debt rating to A (low) from BBB (high).

“The ratings incorporate VW’s solid business risk assessment as an automotive original equipment manufacturer of substantial scale with a highly diversified brand portfolio. Moreover, the ratings upgrades recognize VW’s ongoing solid operating performance despite sizeable challenges and cash outflows stemming from its diesel issue (the diesel issue), which, approximately four years following its initial onset, appears to have been largely addressed by the company, although there remain numerous outstanding (primarily civil) actions across various jurisdictions. Notwithstanding the upgrade, DBRS Morningstar notes that VW’s corporate governance assessment continues to adversely affect the company’s ratings,” said DBRS in a press release.

DBRS changed the trend to stable from positive.

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