The ratings on the Netherlands-based mail, express, and logistics group TPG N.V. reflect the company's strong position in the Dutch mail business, as well as its good position in the global express and logistics businesses, combined with a conservative financial profile. The group's mail business contributed 35% of its €11.2 billion sales and 62% of its €1.4 billion nonlease-adjusted EBITDA in 2001, with one of the highest earnings before interest, taxes, and amortization (EBITA) margins (20%) of European postal operators, attained through high automation, which allows lower staff costs. Ongoing cost flexibility and cost-reduction measures should help to maintain this operating efficiency. The mail business is stable and cash generative, providing adequate downside protection against somewhat weaker-than-forecast financial performance in
