Rating agency Fitch reviews credit rating
Deutsche Post: very solid capital structure even after purchasing AirborneBonn, 08/01/2003, 11:30 AM CEST
The rating agency Fitch has downgraded Deutsche Post World Net's credit rating for long-term debt by one level from AA- to A+ corresponding to a short-term credit worthiness of F1. At the same time the 'Watch Negative' ratings were removed and the outlook described as 'stable'.
Reasons for the downgrading were, amongst others, the integration risks arising after the planned purchase of the U. S. express service provider, Airborne. In Deutsche Post's opinion the Group is reaching important strategic objectives with the purchase of Airborne. The take-over allows Deutsche Post to extend its market share in the U. S. A. and to position itself well in the world's most important express market. The resulting growth potentials will generally further strengthen the company's earning power. Even after purchasing Airborne the Group will have a comparatively low level of debt and a solid capital structure. This was emphasised again during the Financials Press Conference held on 30/07/03 and is also expressly acknowledged by Fitch, 'The rating is enhanced by the strong cashflow capabilities of the group.'
Fitch confirmed Postbank's A+ rating.