Volkswagen downgraded to BBB+ by Fitch Ratings over emissions test scandal
Troubled car manufacturer Volkswagen’s credit rating has been downgraded by Fitch Ratings to BBB+, from A.
Fitch has also given the car maker a negative outlook.
The ratings agency highlighted the recent emissions test scandal, which is now thought to have affected up to 11m of diesel vehicles, as the main driver behind the downgrade. In particular, VW’s corporate governance was pinpointed as being weaker than that of its peers.
However, VW’s management changes were also put under scrutiny, with the credit ratings agency pointing out that, although chief executive Martin Winterkorn had stepped down since the start of the scandal, he was replaced by another long-standing VW member, former Porsche brand chief executive Matthias Mueller.
On 2 November, the United States Environmental Protection Agency (EPA) issued a second notice of violation of the Clean Air Act, which included the 2015 Porsche Cayenne as one of the cars concerned.
Also today, VW announced that it would be offering a $500 (£331) prepaid Visa credit card, a $500 dealership card, which is eligible for use in VW and Audi dealerships, and three years of free roadside recovery services to the US owners of particular diesel models that the company has admitted do not meet emissions standards.
Nearly 500,000 people will be eligible for the offer, which could cost VW almost $500m in total to issue.
VW has declined to comment on the rating's downgrade.