Europe 1
By BW with AFP
The rating agency Standard and Poor’s downgraded a notch Monday the rating of long-term debt of carmaker Volkswagen, shaken by the scandal of rigged its diesel engines. The note of the group’s long-term debt to A- passes, and the outlook remains negative, that is to say, it is quite possible that another degradation of one or two notches intervene in the near future says S & amp;. P
According to the rating agency, warned from September 24 as the Volkswagen note risked being degraded, “Volkswagen showed large deficiencies in its management, its governance and risk management, “and the agency anticipates” a financial risk and in terms of significant medium-term reputation “for the group.
to a new downgrade? Volkswagen admitted last month following revelations of the US authorities, having equipped 11 million vehicles worldwide for software capable of distorting the results of emission tests. “We have not yet concluded our full review” of the consequences of the case, says S & amp; P, one of the three global rating agencies alongside Moody’s and Fitch. Among the factors that could lead to another downgrade, S & amp; P cites “a potential weakening of sales prospects and competitive position” of the company
“Under surveillance. negative “. Fitch and Moody’s also placed Volkswagen under” negative watch “, that is to say, they should soon announce similar rating downgrades. The more a company is highly rated, most preferably it can borrow in the markets by issuing bonds. At the Frankfurt Stock Exchange, the Volkswagen share has lost a third of its value since the scandal broke, wiping out some 30 billion euro market capitalization.
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