Moody's upgrades Volkswagen Bank

Moody's de Mexico said it upgraded the long-term global local-currency senior debt ratings of Mexico-based Volkswagen Bank, SA and Volkswagen Leasing, SA de CV to A2 from A3 and placed the ratings under review for further upgrade.

The agency said the upgrade and review for further upgrade follow a similar action taken on the senior debt ratings of Germany-based parent Volkswagen Financial Services AG, which were upgraded to A2 and remain on review for further upgrade where they were placed on March 17 to assess the impact of the introduction of Moody's new banking rating methodology.

The review will focus on Moody's Advanced Loss Given Failure analysis, which will incorporate 2014 full-year data, and entail further analysis of the banks' securities for which subordination levels and volume thresholds are likely to lead to some Loss Given Failure notching benefits, Moody’s said.

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