The rating agency Fitch lowered in turn Monday debt rating of Volkswagen automobile manufacturer, who confessed two cheating emission regulations, following the lead of the two other agencies, Moody’s and Standard and Poor’s.
So far at “A”, the note of Volkswagen’s long-term debt is lowered two notches to “BBB +” and remains with a negative outlook, which means that a further reduction could be envisaged in the short term, according to a statement.
“This deterioration reflects the problems of governance, management and internal control highlighted” by the scandal of the installation on the engine eleven million vehicles a software able to rig the pollution controls, argues Fitch.
“The emergence of a fraud of this magnitude are not identified by management or n ‘ having not been corrected for so long does not correspond to a Class A rating, “says the agency.
The three major rating agencies were initially placed in September each note in Volkswagen negative watch, when the German manufacturer had confessed.
Standard and Poor’s was then passed the act in mid-October, lowering its rating, while Moody’s did last Wednesday, the day after the confession of a new cheating, the both the actual level of 800,000 cars CO2 emissions.
This new deal “only further highlight a breach of internal control within the group”, also believes Fitch.
The agency said its decision to lower the Volkswagen rating also takes into account “direct and indirect financial effects that can be expected as a result of this crisis,” as the cost of the recall of vehicles problematic, potential fines and trials around the world, and a possible drop in revenue. Volkswagen announced Monday propose to have $ 1,000 in the US with rigged car owners.
Fitch expects that the final bill to be “substantial” for Volkswagen, even though it “is too early to accurately quantify the magnitude and timing of impact “for the financial group.
No comments:
Post a Comment