Volkswagen Opts for Aggressive Financial Policy, Withdraws $1.1 Billion from Scania
Published On Jan 20, 2016
Claus-Peter Tiemann, the spokesman at Volkswagen has confirmed the news that the company has taken out $1.1billion from its Swedish subsidiary, Scania in the form of dividend. Tiemann said that it is an important investment and the dividend amount will reflect the success of the Swedish firm.
Commenting on this, the spokesman at Scania Hans-Ake Danielsson said that the Scania's board has taken this decision last year. This first dividend payment since 2012, amounts to nearly half of the Scania's net income during 2013 to 2015.
Talking about the dividend payment, Standard & Poor's, the Credit rating company said that it "indicates a more aggressive financial policy," thus making it to revise its rating of Scania's stand-alone credit profile from 'a-' to 'bbb+'.
This firm also added, "The group states the dividend is in line with its profit distribution policy, but we view it as a fairly aggressive payment."
In 2014, the German automaker has bought minority shareholders in Scania, which were worth $9.6 billion. This allowed the auto giant to merge Scania, MAN and Volkswagen, which are its major commercial vehicle brands.
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