Flashing lights: Volkswagen hit by ratings agencies, banks and Hollywood
13 October 2015 7:02 pm
Another week for Volkswagen, another disaster
First we have the news that ratings agency Standard & Poor’s has cut the auto company’s long term debt rating in wake of the emissions cheating scandal.
S&P said it was downgrading VW's long-term debt rating by one notch to A- and could cut it “by up to two more notches”.
“The downgrade reflects our assessment that VW has demonstrated material deficiencies in its management and governance and general risk management framework,” S&P said.
“We believe that VW's breach of US environmental law and potential other laws outside the US represents a significant reputational and financial risk to VW over the medium term,”
And then the BBC reports that European Investment Bank (EIB) is saying could recall loans of around €4.6bn that it gave to Volkswagen from about 1990.
The bank’s president Werner Hoyer told a German newspaper that the bank wants its money back because it has to meet certain climate targets with its loans. Like they’re a bank with the principles.
And meanwhile, Hollywood has bought in on the scandal with Paramount Pictures and Leonardo DiCaprio's production company Appian Way optioning the rights to a book proposal from New York Times journalist Jack Ewing about the ongoing debacle. Behind every scandal, there’s a money making opportunity.
Volkswagen can fix the cars but it will take years to get over this self-made disaster.