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Rating

Credit ratings represent an independent and current assessment of a company’s credit standing. The ratings are based on a quantitative analysis and measurement of the annual report and appropriate planning data. Qualitative factors, such as industry-specific features and the company’s market position and range of products and services, are also taken into account. The creditworthiness of our Group is reviewed on an ongoing basis by the rating agencies Standard & Poor’s and Moody’s Investors Service.

Standard & Poor’s has issued a long-term credit rating of BBB+ for our Group’s ability to meet its financial commitments, which it regards as appropriate. Moody’s gave us a similar rating. This means that Deutsche Post DHL is well positioned in the transport and logistics sector. The following tables present the current ratings with the rating factors as well as a peer group comparison.

Current ratings

Rating agency	Standard & Poor's	Moody's Investors Service
Rating	Long-term: BBB+ Short-term: A-2 Outlook: stable	Long-term: Baa1 Short-term: P-2 Outlook: stable
Research	9 July 2010 PDF (485 KB)	2 July 2010 PDF (221 KB)
Rating factors	- Global network, with leading market positions in international European and Asian express delivery services - Dominant position in the German mail market supports Group cash flow generation - Global number one integrated logistics provider - Significant disposal proceeds to fund restructuring and provide liquidity	- Global presence and scale as Europe’s largest logistics company - Large and relatively robust mail business - Plan to increase profitability while reducing capital intensity as outlined in the Roadmap to Value capital markets programme - Sale of Postbank provides cash liquidity and a buffer for the cash outflow associated with the restructuring of US Express
Rating factors	- Regulatory risk and structural volume decline in the mail business - Below-par profitability of businesses outside domestic mail operations - Significant restructuring commitments at US Express - Vulnerability to trading volume declines given high level of operational gearing to support global network	- High fixed cost base depresses the operating margin in case of falling business volume in the mail and express business - Competition in fully liberalised German market for postal services is gradually eroding Deutsche Post’s market share - Revision of the German VAT act will affect Deutsche Post's operating performance - Strategic and operational prospects for a downsized US express business in view of the value of the operation for the global network
Rating definitions	PDF (86 KB)	PDF (1 MB)
Homepage Rating agency	more	more

Peer group comparison (as at 30 June 2010)

	Standard & Poor's	Moody's Investors Services
UPS Long-term Short-term Outlook	AA- A-1+ negative	Aa3 P-1 stable
FedEx Long-term Short-term Outlook	BBB A-2 stable	Baa2 P-2 stable
TNT Long-term Short-term Outlook	BBB+ A-2 stable	A3 - negative
Deutsche Post Long-term Short-term Outlook	BBB+ A-2 stable	Baa1 P-2 stable

Source:: Bloomberg

Services

The postal service for Germany

The logistics company for the world