DHL 2013 Annual Report Download - page 58

Flexible and stable financing
e Group covers its long-term nancing requirements by maintaining a balanced
ratio of equity to liabilities. is ensures our nancial stability and also provides adequate
exibility. Our most important source of funds is net cash from operating activities.
In the reporting year, the ve-year credit facility with a volume of  billion taken
out with a consortium of national and international banks in  was renewed early
and extended until  at more favourable terms. Two additional one-year extension
options were also agreed upon. is credit facility guarantees us favourable market
conditions and acts as a secure, long-term liquidity reserve. It does not contain any
covenants concerning the Group’s nancial indicators. In view of our solid liquidity, the
syndicated credit facility was not drawn down during the year under review.
As part of our banking policy, we spread our business volume widely and main-
tain long-term relationships with the nancial institutions we entrust with our busi-
ness. In addition to credit lines, we meet our borrowing requirements through other
independent sources of nancing, such as bonds and operating leases. Most debt is
taken out centrally in order to leverage economies of scale and specialisation benets
and hence to minimise the cost of capital.
In October , we took advantage of the favourable capital market environment
to issue two bonds with a volume of . billion each, in connection with our Debt
Issuance Programme with a volume of up to  billion as established in . e cash
inow received in the same month was used to repay a bond in the amount of . bil-
lion that matured in January . Further information on the various bonds is con-
tained in the Notes.
Group issues sureties, letters of comfort and guarantees
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. 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.
Moody’s Investors Service has maintained the Group’s credit rating of “Baa” with
a positive outlook. Fitch also conrmed its rating of “+” with a stable outlook in
the reporting year.
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 report-
ing date and the underlying factors. e complete and current analyses by the rating
agencies and the rating categories can be found on our website.
Note 
dpdhl.com/en/investors
54 Deutsche Post DHL 2013 Annual Report
Report on Economic Position
Financial position
Group Management Report