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Credit 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. Shortly after publication of our Q1 2012 results, Moody’s confirmed its “Baa1” rating. This means that the capacity of the Group to meet its financial obligations continues to be classified as adequate. Deutsche Post DHL is well positioned in the transport and logistics sector with these ratings. As a result of the state aid ruling of the European Commission and the associated cash outflow, our significant rating figures will be affected temporarily. Standard & Poor’s has accordingly end of January this year put our credit rating on credit watch with negative implications.

The following table presents the current ratings and the underlying factors.

Current ratings of Deutsche Post

Rating	Standard & Poor's	Moody's Investors Service
Long-term Short-term Outlook	BBB+ (credit watch negative) A-2 (credit watch negative) stable (credit watch negative)	Baa1 P-2 stable

Research	22 August 2011 PDF (491 KB)	8 May 2012 PDF (752 KB)
Update	27 January 2012 PDF (388 KB)

Rating factors	Global network, with leading market positions in international European and Asian express delivery services Dominant position in the German mail market Largest global integrated logistics provider Strong diversification and good scale benefit	Continued stable operating performance may create upward rating pressure Strong performance at DHL due to growing international demand and a strong focus on cost reduction and profitable growth Strong growth potential of emerging markets for DHL activities New price mechanism might allow future price increases at the Mail division Increased flexibility at the Mail division due to new agreement with trade unions (the Generation Pact) and a new wage agreement
Rating factors	Structural volume decline in the mail division and margin dilution from the lower-margin logistics business Regulatory risk evidenced by recent legislation where Deutsche Post lost its value-added-tax exemption for business customers Significant exposure to the cyclical, highly fragmented, and fairly low-margin integrated logistics market	Mail division remains under pressure, despite strong growth in parcel activities, due to ongoing e-substitution and high fixed costs Key credit metrics for FYE 2011 depressed by the significant amount of debt related to the disposal of Deutsche Postbank AG (€4.3 billion in debt finally disappeared from DP’s balance sheet at the end of February 2012) Exposure to cyclicality of express and logistics (DHL) activities

Rating definitions	PDF (86 KB)	PDF (1 MB)
Homepage Rating agency	www.standardandpoors.com	www.moodys.com