Creditworthiness of the Group

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 table shows the current ratings and rating factors. The complete analyses by the rating agencies and the rating categories are to be found on our website.

A.21 Rating agencies’ ratings
Standard & Poor’s (2 July 2009)1)	Moody’s Investors Service (26 June 2009)1)
Long-term: BBB + Short-term: A–2 Outlook: negative	Long-term: Baa 1 Short-term: P–2 Outlook: stable
Rating factors	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	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 Deutsche Post’s partial VAT exemption is currently being reviewed by the German government and the EU Strategic and operational prospects for a downsized US express business in view of the value of the operation for the global network