S&P downgrades SingPost

S&P said it lowered the long-term corporate credit rating on Singapore Post Ltd. (SingPost) and the rating on the company’s senior unsecured notes to BBB+ from A-.

The agency also said it lowered the long-term issue rating on the company’s senior perpetual securities to BBB from BBB+.

S&P also said it lowered the Asean regional scale ratings on SingPost and the senior unsecured notes to axA+ from axAA.

The agency also said it lowered the Asean region scale rating on the perpetual securities to axA from axA+.

The outlook is stable.

The company’s emphasis on reducing leverage has diminished, which led to the downgrades, S&P said.

SingPost’s adjusted debt-to-EBITDA ratio as of Sept. 30 was about 3x, the agency said, and it is unlikely to fall to less than 2x in the next 12- to 18-months, the agency said.

Much of the recent increase in SingPost’s costs is attributable to the seasonal spike in labor and expenses related to the completion of the new regional eCommerce logistics hub, S&P said.

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