Standard & Poor’s Ratings Services revised its outlook on Volkswagen Insurance Co. Ltd. (VICO) to stable from negative. At the same time affirmed the ‘A-‘ long-term counterparty credit and insurer financial strength ratings on VICO.
The outlook revision and affirmation mirror the Aug. 2, 2011, rating action on VICO’s parent, Volkswagen AG (A-/Stable/A-2).
The outlook revision on Volkswagen reflects S&P’s opinion that Volkswagen has substantially improved its financial risk profile over the past year, thanks to a strong operating performance.
The rating action and outlook revision on VICO are not due to any changes to its stand-alone characteristics. Rather, because VICO qualifies as a captive insurer under rating criteria, S&P rates it at the same level as its parent. The ratings on VICO will therefore move in lock step with those on Volkswagen.
The stable outlook on VICO reflects that on its parent Volkswagen.
Source : S&P
