(The following statement was released by the ratings agency)
MOODY'S CHANGES TO NEGATIVE FROM STABLE THE OUTLOOK ON VOLKSWAGEN BANK GMBH's A1 DEBT AND DEPOSIT RATINGS, FOLLOWING THE OUTLOOK CHANGE AT IS PARENT VOLKSWAGEN FINANCIAL SERVICES; STABLE OUTLOOK ON P-1 SHORT-TERM AND C+ FSR IS AFFIRMED
NEW YORK, June 23 - Moody's Investors Service changed to negative from stable the outlook for the A1 debt and deposit ratings for Volkswagen Bank GmbH (VW Bank). This rating action follows the outlook change to negative from stable for the A1 senior unsecured debt ratings of its direct and indirect parent, Volkswagen Financial Services AG (VWFS, rated A1/P-1) and Volkswagen AG (please see separate press release). The stable outlook for the P-1 and the C+ Financial Strength Rating was affirmed. The A1 debt and deposit ratings of VW Bank are based on the close integration of VW Bank with its 100% owner VWFS, and benefit from a Patronatserklaerung (letter of comfort) and a profit-pooling agreement with VWFS. VW Bank GmbH is based in Braunschweig, Germany, and as of FYE 2002 had total assets of B15.9bn. London Samuel S. Theodore Managing Director Financial Institutions Group Moody's Investors Service Ltd. 44 20 7772 5454 London Michael Dawson-Kropf VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service Ltd. 44 20 7772 5454 Moody's Investors Service Copyright 2003, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities.