Volkswagen ratings downgraded to Baa1 at Moody’s, outlook stable

Moody’s downgraded Volkswagen (VWAGY) to Baa1 from A3, citing sector headwinds, structural challenges, ongoing need for investment and fierce competition in China. “The downgrade to Baa1 reflects the recent contraction in operating margin and free cash flow generation, with limited expectation of a material recovery over the next quarters,” Moody’s said in a statement.