VW’s Credit Rating Improves

VW’s Credit Rating Improves

0 comments 📅29 June 2017, 01:15

The Volkswagen Group’s talents to repay debt has improved, according to UK-based credit rating agency Fitch Ratings.

The operation raised the VW Group’s debt outlook to stable, from negative. It also reaffirmed the Band’s BBB+ long-term debt rating.

Volkswagen had been rated at A, but with the 2015 dieselgate taint it was lowered to BBB+. At the time, Fitch gave the Group a negative outlook. Now that the pecuniary risks have largely been accounted for, Fitch saw fit to raise the rating.

“In special, we believe that the group could accommodate several billion euros in additional fines and/or remember and repair costs and still sustain its current ratings,” said the rating power in a statement. It also added that VW has shown “strong resilience” since 2015.

Fitch acknowledges that the hazard of further lawsuits and the associated costs are, though. That likely means that the VW Number’s rating won’t improve in the near future.

Fitch is one of only four credit rating agencies recognized by the European Principal Bank. Its rating can affect how easy it is for a company to borrow money.

Volkswagen has set aside $25 billion in the wake of the emissions defilement.

[source: Bloomberg]

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