Deutsche Post DHL cancels agreement with ratings agency Standard & Poor's 'solely for commercial reasons,' switches to Fitch Ratings, retains Moody's

Cindy Allen

Cindy Allen

BONN, Germany , November 21, 2012 (press release) – 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.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.