Ratings

In March 2015, rating agency Moody’s Investors Service raised its short-term and long-term ratings for Volkswagen AG, Volkswagen Financial Services AG and Volkswagen Bank GmbH by one notch each from P-2 to P-1 and from A3 to A2 respectively. The primary reasons for this were the solid operating performance in 2014 and the expectation that this can be improved on over the next 12 to 18 months due to the robust brand portfolio, the market position in Western Europe and China, and the continuing efforts to increase efficiency.

In June 2015, Moody’s Investors Service raised the long-term rating of both Volkswagen Financial Services AG and Volkswagen Bank GmbH by two notches each to Aa3. The reason for this was a change in the rating method.

As a result of the emissions issue, Moody’s Investors Service lowered its short-term and long-term ratings for Volkswagen AG in November 2015 by one notch each from P–1 to P–2 and from A2 to A3 respectively. The long-term ratings for Volkswagen Financial Services AG and Volkswagen Bank GmbH were downgraded from Aa3 to A1. The rating agency lowered the outlook for the companies from stable to negative.

In connection with the irregularities in the software used for certain diesel engines from the Volkswagen Group, in October 2015 Standard & Poor’s initially downgraded the short-term and long-term ratings for Volkswagen AG, Volkswagen Financial Services AG and Volkswagen Bank GmbH by one notch each, to A–2 and A– respectively.

In a further step in December 2015, also as a result of the emissions issue, Standard & Poor’s downgraded the long-term ratings for Volkswagen AG and Volkswagen Financial Services AG from A– to BBB+. The outlook for Volkswagen AG, Volkswagen Financial Services AG and Volkswagen Bank GmbH has been changed to negative.