S&P cuts Singpost’s credit rating to BBB+

SINGAPORE (Nov 10): Standard & Poor’s Financial Services has lowered Singapore Post’s credit rating from “A-“ to “BBB+”, after noting that the group is more willing to have a higher, albeit sustainable, leverage.

“SingPost's adjusted debt-to-EBITDA ratio as of Sept 30, 2016, was about 3 times, and we believe it is unlikely to fall below 2 times in the next 12 to 18 months,” said S&P Global Ratings’ analyst Annabelle Teo in a release on Wednesday.

That said, Teo also emphasised that the group continues to focus on “protecting its operating margins and acquisitions integration” and is likely to stabilise its debt to EBITDA ratio at below 2.5 times by end March 2018, after its recent high spending and cost inflation. As such, the ratings agency has given the group a “stable outlook”.

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