Fitch: Volkswagen bonds A-

Fitch Ratings said it assigned a final long-term rating of A- to Volkswagen Bank RUS LLC’s issues of fixed-rate ruble-denominated bonds series 08 and 09.

The issues benefit from recourse to Volkswagen Bank’s German parent, Volkswagen Financial Services AG.

The bonds have a tenor of five years with a put option in two years. The coupon for the first two years has been set at 11.3%. The proceeds from the issuance will be used solely for Volkswagen Bank’s corporate purposes, Fitch said.

The ratings are driven by potential support from Volkswagen Financial Services, a wholly owned subsidiary of Volkswagen AG, the agency said.

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