The ratings on The Netherlands-based mail group TNT N.V. reflect its strong Dutch mail business, which remains very profitable and a significant cash generator for the group. The ratings also reflect TNT's solid position as a global leader in the express business, which the strong TNT brand supports. Standard&Poor's Ratings Services expects TNT's reported mail EBIT margins to decrease to about 15% in the medium term, as we expect falling volumes in the highly profitable Dutch operations will be only partly offset by cost-cutting measures and strong organic growth in the European mail networks business, which has lower margins. We expect the mail division to maintain its high absolute levels of cash flows in the foreseeable future. In
