VW downgraded as scandal unravels its reputation

Credit ratings firm Moody's downgraded Volkswagen's credit on Wednesday, as fallout from the German automaker's emissions scandal plagues the auto giant.

The credit downgrade follows new revelations by federal environmental regulators earlier this week that the company's emissions cheating has grown beyond initial violations that affected nearly a half-million diesel vehicles.

The credit downgrade "reflects mounting risks to Volkswagen's reputation and future earnings," Moody's said, pointing out that the downgrade reflects several new revelations about the extent of the company's violations.

The White House even chimed in Wednesday."I do think it is apparent that they're struggling to get their arms around ... what appears to be a pretty significant problem," spokesman Josh Earnest told reporters at his daily briefing.

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