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 June 30, 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 more than 24% in the first half of 2004. Standard&Poor's expects TPG's target EBITA margin of about 21.5% for its mail business for 2004 to be achievable. Cost-flexibility and cost-reduction measures have offset the expected decline
