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Moody's revises outlook on ratings of 2 Volkswagen units

Moody's on March 21 revised to stable from negative the outlook on certain ratings of Volkswagen Financial Services AG and Volkswagen Bank GmbH.

The outlooks were revised on both entities' A3 senior unsecured debt and long-term issuer ratings, as well as the A1 long-term bank deposits rating of Volkswagen Bank, including all related subsidiaries where applicable. All the ratings were affirmed, as were the P-1 short-term deposit ratings on Volkswagen Bank.

The action follows a similar one taken on parent company Volkswagen AG on March 20. The stable outlook also takes into account the successful resumption of senior unsecured debt issuance in late 2017, and the resulting greater role of senior unsecured debt in Volkswagen Bank's liability structure.