Moody’s gives Volkswagen Financial bonds A3

Moody's Investors Service said it assigned A3 long-term ratings to two Turkish lira-denominated bonds issued by Volkswagen Financial Services NV.

The bonds were issued under the €18 billion debt issuance program and are guaranteed by Volkswagen Financial Services NV's parent company, Volkswagen Financial Services AG (rated A3, positive outlook).

The outlook is positive.

Moody’s said the A3 ratings and positive outlooks on the two bonds are aligned with those of the issuer and of the guarantor. The positive outlooks indicate that the rating of these Turkish lira-denominated bonds could, in principle, exceed the current A3 local-currency country ceiling given the factors that mitigate many of the risks addressed by the ceiling, despite the absence of alternative currency settlement provisions in the bond documentation.

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