The ratings on the Netherlands-based mail group TNT N.V. reflect our assessment of its "strong" business profile, which is supported by the highly profitable and cash-generative Dutch mail business, the group's solid position as a leading global express integrator, and its "intermediate" financial profile. These strengths are, in our view, partly offset by the group's participation in competitive markets, its exposure to cyclicality through its Express unit, and weakening volumes in its domestic mail operations. TNT's operating performance in 2009 was heavily pressured by recessionary economic conditions in many of its markets, particularly in the first half of the year. In the second half of 2009, the full impact of cost-saving initiatives, stabilization in demand, albeit at a low level,
