S&P revises PostNL view to positive

Standard & Poor's said it revised its outlook on PostNL NV to positive from stable.

At the same time, the agency affirmed its BBB-/A-3 long- and short-term corporate credit ratings on PostNL and the BBB- issue rating on its senior unsecured debt.

S&P said the outlook revision reflects its view that the company's measures to offset the ongoing double-digit structural decline of mail volumes – such as cost savings, raised prices and expanded Parcels business – were effective. The company delivered better-than-anticipated operating results in 2014, despite the difficult operating environment.

Revenues increased by 2% to €4,251,000,000 in 2014, and the S&P-adjusted EBITDA margin rose to 12.9%, from 11.9% in 2013.

In addition, by the end of 2014, PostNL delivered €222 million of the €365 million targeted cost savings under its 2013-2017 restructuring plan, which indicates a performance ahead of schedule.

Moreover, the agency believes that the company has scope to continuing reducing its cost base, which would further strengthen the company's financial profile.

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