Deutsche Post downgraded to 'A'; outlook stable
Fitch Ratings said it has downgraded Deutsche Post AG’s issuer default and senior unsecured ratings to ‘A’ from ‘A+’, following which the outlook on the rating is now ‘stable’.
The short-term issuer default rating was affirmed at ‘F1’, Fitch said.
The ratings agency said the downgrade reflects the delays in Deutsche Post’s profit improvement and debt reduction. However, Fitch also said the fundamental business of the group is doing well, albeit with localised problems in France and the US express division which is the main area of concern. Many of the group’s activities have leading market positions, Fitch added.
The US operation’s improvement is expected to be slow with break-even targeted for 2009, Fitch said. The express operations in Europe, Asia, and the smaller emerging market portion are showing greater than double-digit operating profit margins, it added.
The ratings of Deutsche Post do not take into account the performance of Deutsche Postbank, Fitch said.
