Deutsche Post DHL cancels agreement with ratings agency Standard & Poor's 'solely for commercial reasons,' switches to Fitch Ratings, retains Moody's
November 21, 2012
– Group cancels rating agreement with S&P
Fitch assigns Group credit rating of BBB+ with a stable outlook
Current Moody's rating: Baa1 with positive outlook
Deutsche Post DHL, the world's leading postal and logistics group, has - for commercial reasons - canceled with immediate effect its long-standing rating agreement with the rating agency Standard & Poor's (S&P). Instead, the company will now rely on Fitch Ratings, alongside Moody's Investors Service (Moody's), to assess the credit worthiness of the company. S&P last confirmed its BBB+ long-term rating of Deutsche Post DHL with a stable outlook at the end of August.
Due to the financial stability and outstanding market position of the Group in global logistics and in the German mail and parcel business, Fitch today issued an equivalent rating of BBB+ with stable outlook. Moody's current rating is Baa1. The outlook on the Moody's rating was raised to "positive" at the end of September as a result of Deutsche Post DHL's continued successful business performance and improvement in key credit metrics.
Decision solely for commercial reasons
"Solely for commercial reasons we have decided to cancel our long-standing and constructive working relationship with Standard & Poor's," explained CFO Larry Rosen. "Thanks to our financial strength, Deutsche Post DHL's reputation on the capital market, and the ratings from Moody's and Fitch, we retain a strong capability to successfully execute capital market transactions at attractive terms."
In conjunction with its mid-term growth plan, the Group places a high priority on ensuring sustainable financial stability and flexibility. As an appropriate balance sheet structure is key to achieving this objective, in 2010 the credit rating was confirmed to be a core element of the financial strategy. Since then, the Group has maintained its long-term target levels of BBB+ and Baa1.