Rating agency Standard & Poor's reviews credit rating
Above average financial profile is confirmedBonn , 05/12/2003, 11:30 AM CEST
The rating agency Standard & Poor's (S&P) today downgraded Deutsche Post World Net's credit rating for long-term liabilities by one level from A+ to A. The short-term credit rating of A-1 was confirmed. At the same time, the credit watch announced on 7 February of this year was cancelled.
The reason for the downgrading lies essentially in the altered assessment of pension obligations financed by provisions. Contrary to previous practice S&P announced on 7 February that it classifies these provisions fully as liabilities. Together with other companies and external financial experts Deutsche Post does not share this opinion.
In other respects S&P confirmed Deutsche Post World Net's above average financial profile. Especially the strong cash flow is emphasised as supporting the high rating. The agency also values the acquisition of Airborne in the U. S. A. as a positive step towards strengthening Deutsche Post World Net's market position.
The downgrading of the rating by S&P has no immediate effects on Deutsche Post World Net's financing costs, because the majority of financial liabilities bear fixed interest rates.
The company remains committed to the solid and conservative financial policy practised up until now to maintain an above average credit rating.
The decisions of both of the other rating agencies Moody's and Fitch are expected during the coming weeks.