The ratings on The Netherlands-based TNT N.V. reflect the group's strong Dutch mail business, which remains very profitable and a significant cash generator for the group; overall conservative financial profile, although leverage is moderately high for the rating; and solid position as a global leader in the express and logistics businesses, supported by the strong TNT brand. The group's current rebranding strategy--which aims to convert all major business units (most notably TNT Post in The Netherlands) and the corporate entity to the TNT brand--illustrates management's intention to further build on and leverage its strong international brand. The ratings continue to be underpinned by TNT's stable mail business, which achieves EBITA margins of more than 20%. Although this margin might fall
