The ratings on The Netherlands-based TPG N.V. reflect the group's strong position in the Dutch mail business, its good position in the global express and logistics businesses, and its conservative financial profile. At March 31, 2004, TPG had total debt of about €3.0 billion ($3.6 billion), which includes about €1.4 billion of lease adjustments and guarantees, but excludes unfunded pension obligations. The ratings are underpinned in particular by TPG's stable and cash-generative mail business, which benefited from a strong EBITA margin of almost 21% in the fiscal year ended Dec. 31, 2003. Standard&Poor's expects TPG's target EBITA margin of more than 20% for its mail business for 2004 to be achievable. Cost-flexibility and cost-reduction measures have offset the
