Moody's on March 23 changed the outlook on the long-term global local currency senior unsecured debt ratings of both Volkswagen Bank SA Institución de Banca Múltiple and Volkswagen Leasing, S.A. De C.V. to stable from negative, while affirming both at A3.
Moody's also affirmed both the companies' long-term Mexican national scale debt ratings at Aaa.mx.
Additionally, Volkswagen Leasing's global scale short-term debt program rating was affirmed at Prime-2, and its Mexican national scale short-term debt program rating was affirmed at MX-1.
The affirmations on the two companies' debt ratings and the actions on their outlooks follow a similar action taken on their German parent, Volkswagen Financial Services AG.
Volkswagen Bank and Volkswagen Leasing's debt ratings benefit from full and unconditional guarantees from Volkswagen Financial, and Moody's believes the parent has high incentive to support the two units in times of stress given the Mexican firms' strategic fit and importance to the German firm's operations.