Research Update: Dutch E-Commerce And Postal Operator PostNL Affirmed At 'BBB/A-2' On Expected Improved Metrics; Outlook Still Negative

PostNL N.V.'s credit metrics stayed below our thresholds for the rating in 2023, held back by continued weakness of the e-commerce market and material cost increases. That said the company's active yield management and cost discipline, alongside recovering business volumes and controlled capital spending, will likely result in a steady improvement of S&P Global Ratings-adjusted funds from operations (FFO) to debt toward the 45%-mark, our guideline for the 'BBB' rating, over the next 12 months. We therefore affirmed our 'BBB/A-2' long- and short-term issuer credit ratings on PostNL and our 'BBB' rating on its senior unsecured notes due in 2024 and 2026. The outlook remains negative, reflecting that PostNL's adjusted FFO to debt currently falls short of our guideline for

...- PostNL N.V.'s credit metrics stayed below our thresholds for the rating in 2023, held back by continued weakness of the e-commerce market and material cost increases. - That said the company's active yield management and cost discipline, alongside recovering business volumes and controlled capital spending, will likely result in a steady improvement of S&P Global Ratings-adjusted funds from operations (FFO) to debt toward the 45%-mark, our guideline for the '###' rating, over the next 12 months. - We therefore affirmed our '###/A-2' long- and short-term issuer credit ratings on PostNL and our '###' rating on its senior unsecured notes due in 2024 and 2026. - The outlook remains negative, reflecting that PostNL's adjusted FFO to debt currently falls short of our guideline for the rating. We therefore see a risk that we could lower the rating over the next 12 months if trading prospects as well as the company's operating performance and financial policies appear insufficient to support...

Research Update