We set the rating of Volkswagen Bank GmbH and the related capital instruments to n.r., because the bank is no longer relevant for internal rating processes.
Creditreform Rating has lowered the rating of Volkswagen Bank GmbH to A- from A. The outlook is stable. Creditreform Rating has also determined the ratings of the debt classes as follows. The rating of Additional Tier 1 was set to not rated (n.r.) from BBB+, the rating of Tier 2 to BBB+ from A- and the rating of the Senior Unsecured to A- from A.
Creditreform Rating has set the bank rating of Volkswagen Bank GmbH to A (watch). The rating has been set to watch due the spin-off of Volkswagen Bank GmbH from Volkswagen Financial Services AG. Due to the group restructuring the Volkswagen Bank GmbH is now a subsidiary of Volkswagen Financial Services AG. The rating is based on the profitable and efficient business model as well as the the strong market position in the automotive bank sector which has resulted in an above average profitability. The automotive banks activities concentrate on the vehicle financing for dealers/customers and further direct banking as for example deposit banking. On the other hand, the concentration on one industry sector, in particular the dependence on the parent company has an adverse effect on the rating..