The ratings on Netherlands-based mail group TNT N.V. reflect the group's strong Dutch mail business, which remains very profitable and a significant cash generator for the group. The ratings also reflect the group's solid position as a global leader in the express business, supported by the strong TNT brand. We expect TNT's reported mail EBIT margins to decrease to about 15% in the medium term, with decreasing volumes in the highly profitable Dutch operations being only partly offset by cost-cutting measures and strong organic growth of the European mail networks business, which has lower margins. The mail division is expected to maintain its high absolute levels of cash flows in the foreseeable future. In the first half of 2007, revenues
