Moody's confirmed the ratings for Salt Lake City-based BMW Bank of North America, including its long-term bank deposit rating at Aa3 and issuer rating at A3.

The rating agency also affirmed its Prime-1 short-term bank deposit rating.

The ratings action concludes a review initiated March 25. The outlook is negative. The ratings actions follow similar actions on parent Bayerische Motoren Werke AG.

The bank's baa2 baseline credit assessment confirmation reflects Moody's view that the company will be able to maintain good asset quality and solid profitability despite worsening operating conditions, benefiting from its sale of lower quality auto loans and leases to its immediate parent, BMW Financial Services NA LLC. The rating agency expects BMW Bank to maintain a "substantial capital cushion."

The negative outlook on BMW Bank reflects that on its ultimate parent BMW, whose weaker credit profile will have negative implications for BMW Bank's access to funding and its financing volumes, according to Moody's.