Moody's: Volkswagen unchanged

Moody's Investors Service said Volkswagen AG's A3 long-term and P-2 short-term ratings with a stable outlook are unaffected by its recent announcement that it raised its holdings in ordinary shares in MAN SE to 30.47% triggering a mandatory offer to all remaining shareholders to acquire their shares in MAN.

Although the offer price seems to be relatively unattractive to MAN shareholders as it did not include a premium to MAN's recent share price, in a worst case VW might have to pay €9.7 billion in cash, the agency said.

Given the strong cash flow generation in the recent past leading to a very healthy capital structure for VW and MAN, VW's A3 rating would still allow for such a sizeable transaction, the agency added.

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