Netherlands-based mail and logistics solutions operator PostNL is facing higher-than-expected pressure from competition as a result of regulatory changes. This is likely to continue to pose risks for the company's operating performance. We understand that PostNL will continue to rigorously implement its recently enhanced cost-saving initiatives to mitigate the volume decline in its mail division and counteract the increased competition. However, the cost savings from these measures may come with a delay and may not be sufficient to prevent a dilution of PostNL's profitability and a recovery in its credit metrics to levels in line with the current rating. We are therefore revising our outlook on PostNL to negative from stable and affirming our 'BBB+' long-term issuer credit rating on
