S&P: Singapore Post notes A+

Standard & Poor's said it assigned an A+ rating and axAAA Asean regional scale rating to the proposed issue of senior perpetual cumulative securities by Singapore Post Ltd.

The outlook is negative.

The agency said it rates the securities one notch below the corporate credit rating on the company because the securities' distributions can be deferred at the issuer's discretion.

The rating reflects the company's very strong market position in the competitive domestic and international mail business in Singapore, high operating efficiency and solid cash flow protection measures relative to net debt, S&P said.

Weaknesses include geographical concentration, margin pressures and the company's somewhat limited growth opportunities, the agency said.

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