Standard and Poor's (S&P) has revised its outlook of Volkswagen Insurance Co (VICO) to positive from stable as well as affirming its "A-" ratings.
The revision comes after S&P confirmed that, under its criteria, VICO qualifies as a captive insurer of parent company Volkswagen AG (VW).
On 27 August, S&P revised its outlook of VW to positive from stable and affirmed the "A/A-2" ratings, moving the ratings of VICO in step with those of VW.
S&P has stated that it may raise the rating of VW over the coming two years if “the group's profit measures remain strong in the face of more challenging macro economic conditions and if credit ratios remain at the higher end of the 'modest' category despite high capital expenditures.”
