DHL 2011 Annual Report Download - page 58

Group issues guarantees and letters of comfort
Deutsche Post  provides security for the loan agreements, leases and supplier
contracts entered into by Group companies, associates or joint ventures by issuing letters
of comfort, sureties or guarantees as needed.  is practice allows better conditions to
be negotiated locally.  e sureties are provided and monitored centrally.
Creditworthiness of the Group remains adequate
Credit ratings represent an independent and current assessment of a company’s
credit standing.  e ratings are based on a quantitative analysis and measurement of
the annual report and appropriate planning data. Qualitative factors, such as industry-
speci c features and the company’s market position and range of products and services,
are also taken into account.
 e creditworthiness of our Group is reviewed on an ongoing basis by rating
agencies Standard & Poor’s and Moody’s Investors Service. In the second half of , both
agencies con rmed their ratings of “+” and “Baa”, respectively.  is means that
the capacity of the Group to meet its  nancial obligations continues to be classi ed as
adequate. Deutsche Post DHL is well positioned in the transport and logistics sector
with these ratings.  e following table shows the ratings as at the reporting date and the
underlying factors.  e complete and current analyses by the rating agencies and the
rating categories can be found on our website.  e e ects of the  state aid ruling are
described in the outlook section of the Annual Report.
standardandpoors.com,
moodys.com
dp-dhl.com/en/investors.html
Note 
. Agency ratings
Rating factors Rating factors
Standard & Poor’s
Long-term:  + 1
Short-term: -
1
Outlook: stable
1
• 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 diversifi cation and good
scalebenefi t.
• Structural volume decline in the mail
business 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.
• Signifi cant exposure to the cyclical,
highly fragmented and fairly low-
margin integrated logistics markets.
Moody’s Investors Service
Long-term: Baa
Short-term: -
Outlook: stable
• Scale and global presence as one
of the largest logistics companies
in the world.
• Large and relatively robust mail
business.
• Success in restoring profi tability
at the logistics activities while
reducing the negative impact of
a change intreatment at the
 division.
• Improved liquidity profi le thanks
to syndicated credit facility and
conservative financial profile of
the Group.
• Improving operating performances
and key credit metrics.
• Exposure to mature mail business
and overall macroeconomic trends.
• Increased liberalization of the
German mail market.
1 Credit watch negative.
Deutsche Post DHL Annual Report 
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