The ratings agency has maintained LeasePlan’s credit rating of BBB+/A-2 but said it felt the economic outlook for the fleet lessor’s core European markets was deteriorating.
Standard & Poor’s also said it felt, while the fleet lessor was a strategically important subsidiary of Volkswagen Bank, which owns a 50% stake in the company, the likelihood of "future extraordinary support" from Volkswagen could diminish over time.
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The credit agency’s report said: "The stable outlook reflects our expectations that potential pressure on LeasePlan’s stand-alone credit profile or weakening parental support might offset the benefits from any upgrade of VW Bank and Volkswagen AG."
Standard & Poor’s assessed LeasePlan’s capital and earnings as "strong" reflecting the agency’s expectations that the lessor’s risk-adjusted capital (RAC) ratio will remain in the 10%-11% range over the next 18 months.
The ratings agency said this expectation was based on the view LeasePlan’s earnings will remain adequate to sustain profitability in "a volatile funding cost environment" but added the caveat; a worsening of macroeconomic conditions in several European countries may adversely affect its projection.
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