Fitch: Volkswagen unchanged

Fitch Ratings said news that Volkswagen Group has increased its stake in MAN SE to 53.7% does not have any impact on its ratings.

Volkswagen's ample liquidity will enable the group to accommodate the €3.5 billion cash outflow estimated from the transaction without jeopardizing its strong financial metrics, Fitch said.

From a business and strategic standpoint, the transaction has clarified Volkswagen's strategy in the truck sector and lifted the uncertainty regarding potential future cash outflows, the agency said.

Although the heavy truck sector is more cyclical and volatile than the passenger car industry, it enables further product diversification, Fitch said.

The cycles in the two sectors are not always synchronized and simultaneous, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.