Fitch lifts outlook for VW to stable saying financial risks from scandal are known
London — Volkswagen’s (VW’s) debt outlook was raised to stable from negative at Fitch Ratings, which said the bulk of operational and financial risks from the car maker’s diesel-emissions scandal were now known. Fitch also affirmed VW’s BBB+ long-term debt rating, three ranks above junk, saying after the market closed on Tuesday that while the possibility of further legal action related to emissions has not disappeared, the risks to the Wolfsburg, Germany-based car maker had become manageable. The stable outlook means the credit-reporting firm was unlikely to change VW’s rating soon. "In particular, we believe that the group could accommodate several billion euros in additional fines and/or recall and repair costs and still sustain its current ratings," Fitch said in a statement. VW has demonstrated "a strong resilience" since the start of the emissions crisis in September 2015, with only a limited effect on credit metrics seen by the "exit point" of 2019-2020, when the bulk of cash...
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