The rating on Germany-based postal service provider Deutsche Post AG (DP) reflects the group's strong business risk profile, supported in particular by its cash-generative Mail business, its predominant position as a global integrated logistics provider, and its intermediate financial profile. These strengths are, in our view, partly offset by DP's participation in competitive markets. Specifically, the group has exposure to cyclical demand pressures, weak profitability relative to its peers, and structural volume decline in its domestic Mail operations. DP's businesses are suffering from the effects of declining global trading volume and reduced demand for integrated logistics services as a result of the economic downturn. In the first quarter, ended March 31, 2009, revenues fell by 12.9% to €11.5 billion and
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