“The negative outlook reflects our expectations of weakening business prospects of SingPost's postal and parcel business and the likelihood that leverage will remain elevated in the next 24 months,” says the analyst.
Standard and Poor (S&P) Global Ratings analyst Pauline Tang has revised her outlook on Singapore Post (SingPost) to “negative” from “stable”.
In her report dated Dec 12, Tang says this revision reflects her view of “intensifying structural hindrances” to its postal and parcel business and the potential for sustained earnings weakness. This also coincides with SingPost's rating buffer being largely depleted following its acquisition of Australia-based FMH.
