S&P cuts Singapore Post

S&P said it lowered its ratings on Singapore Post Ltd.’s issuer rating to BBB from BBB+ and the rating on the S$250 million of senior perpetual securities guaranteed by the company to BB+ from BBB-.

“Our downgrade on SingPost reflects our view that the company's business mix is increasingly weighted toward logistics and that weakness in the post and parcel segment is more prolonged than we had previously anticipated.

“In our view, SingPost is pivoting toward a more competitive Australia-focused logistics segment. SingPost has been accelerating its strategic expansion into logistics to diversify away from its traditional postal business, which is in structural decline. This investment has put pressure on SingPost's financial profile; its debt-to-EBITDA ratio remained elevated at 3.1x in the fiscal year ended March 31, 2023. We expect the debt-to-EBITDA ratio to improve to less than 3x by fiscal 2025,” S&P said in a press release.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.