Fitch upgrades Volkswagen

Fitch Ratings said it upgraded Volkswagen AG's long-term issuer default ratings and senior unsecured notes to A from A- and short-term issuer default rating to F1 from F2.

The outlook is stable.

Fitch also said it upgraded Volkswagen International Finance NV's guaranteed notes to A from A-.

The upgrades reflect the group's resilient performance in a currently highly adverse and competitive automotive environment and comfortable financial headroom in its ratings, the agency said.

Earnings declined slightly in 2013 and are likely to erode further in 2014, but the agency said it expects a recovery in 2015 as benefits from the group's new platform increase and the product portfolio strengthens further.

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