S&P downgrades Singapore Post

Standard & Poor's said it lowered the long-term corporate credit rating on Singapore Post Ltd. to A+ from AA-, along with its fixed-rate notes to A+ from AA-.

The outlook is negative.

S&P also said it lowered the rating on its perpetual securities to A from A+ and affirmed its axAAA/axA-1+ Asean regional scale rating, axAAA rating on the fixed-rate notes and axAA+ rating on the perpetual securities.

The downgrade reflects an expectation that the company's profitability is likely to weaken due to the company's increasing focus on the logistics business and the decline in its domestic mail business, the agency said.

The logistics business is more competitive and has lower margins than the mail business, S&P said.

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