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Moody's Investors Service Inc.

Moody's Assigns Definitive Ratings to Notes Issued by VCL Multi-Compartment S.A.

Strategic Insights

— 2 min read

The Moody's Investors Service has assigned definitive ratings to Notes issued by VCL Multi-Compartment S.A. in a public securitization sponsored by Volkswagen Leasing GmbH ("VW Leasing") and ultimately owned by Volkswagen Aktiengesellschaft ("VW"). The transaction features a static pool of German auto leases originated by VW Leasing, with approximately EUR 1.000 million in assets as of the 31 May 2025 pool cut-off date. The reserve fund is funded to 1.2% of the portfolio balance, and an additional risk reserve will be funded within 30 days after Volkswagen Bank GmbH is downgraded below Baa2.

Key Takeaways:

  • The Notes are backed by a static pool of German auto leases originated by Volkswagen Leasing GmbH, with a portfolio of approximately EUR 1.000 million in assets as of 31 May 2025.
  • The reserve fund is funded to 1.2% of the portfolio balance, and an additional risk reserve will be funded within 30 days after Volkswagen Bank GmbH is downgraded below Baa2.
  • The total credit enhancement for the Class A Notes is 5.6%, and the total credit enhancement for the Class B Notes is 3.8%.
  • The ratings are primarily based on the credit quality of the portfolio, the structural features of the transaction, and its legal integrity.
  • The transaction features some credit weaknesses, such as a high degree of linkage to VW Leasing and a structure which allows for periods of pro rata payments under certain scenarios.
  • The expected losses capture our expectations of performance considering the current economic outlook, while the PCE captures the loss we expect the portfolio to suffer in the event of a severe recession scenario.
  • The portfolio lifetime expected losses of 0.50% and PCE of 5.0% are lower than the EMEA Auto ABS average and are based on our assessment of the lifetime expectation for the pool and the pool characteristics.
  • The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in June 2025.

Statistics:

  • EUR 1.000 million: the total value of the portfolio of German auto leases as of 31 May 2025.
  • 1.2%: the reserve fund as a percentage of the portfolio balance.
  • 5.6%: the total credit enhancement for the Class A Notes.
  • 3.8%: the total credit enhancement for the Class B Notes.
  • 0.50%: the expected losses in the event of a severe recession scenario.
  • 5.0%: the PCE of the portfolio.
  • 71.7%: the implied coefficient of variation ("CoV") of the portfolio.

Sources:

  • Moody's Investors Service, Moody's Ratings (Moody's) has assigned definitive ratings to Notes issued by VCL Multi-Compartment S.A.
  • "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in June 2025.
  • Available at https://ratings.moodys.com/rmc-documents/445561 or on the Rating Methodologies page on https://ratings.moodys.com.

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