Volkswagen AG: Rating Report

On October 25, 2018, DBRS Limited (DBRS) changed the trends on the long- and short-term ratings of Volkswagen AG (VW or the Company) and VW Credit Canada Inc. to Positive from Stable, recognizing the Company’s strong financial risk assessment with credit metrics persisting at levels above the current ratings. DBRS also confirmed the ratings at BBB (high) and R-2 (high), respectively. The confirmations reflect VW’s solid business risk assessment as an automotive original equipment manufacturer (OEM) of substantial scale with a highly diversified brand portfolio. Additionally, DBRS notes that VW has considerably addressed its diesel issues (the Diesel Issue) and has likely incurred the significant majority of associated cash outflows with the Company’s liquidity position remaining at strong levels (although numerous — primarily civil — actions remain outstanding across various jurisdictions).