Volkswagen scandal spells trouble for IPOs, credit market

Tougher rules: The exhaust system for Volkswagen vehicles seen in a second-hand car parts shop in Jelah, Bosnia and Herzegovina. The EU could introduce tougher car emissions tests in the wake of the Volkswagen rigging scandal. – Reuters

BERLIN: A week after it admitted to cheating on US emissions tests for years, Volkswagen AG’s pain is beginning to spread throughout Europe’s credit markets.

The Bank of France stopped trading two securities backed by Volkswagen auto loans on Friday, while executives of parts supplier Schaeffler AG found themselves fielding questions about their biggest customer as they drum up support for an initial public offering, according to people familiar with the matters.