Loading...
Reload document 
Open in new tab French EPIC/EPA
La Poste
Rating NR, A, AA
overview
Gross Bond issuance
Key officials
€ bn
Jean-Paul Bailly
Chairman & CEO
La Poste is a limited liability company (société
anonyme) and 100% of its share capital is held by
the government. La Poste consolidates around 200
subsidiaries and operates its activities organised in
three business sectors: mail, parcels and express, and
banking activities through La Poste retail brand (post
offices network). La Poste carries out four public
service missions (universal postal service, regional
development, carrying and distribution of the press
and the provision of access to banking services).
issuance methods
Under the EMTN programme (maximum amount
Eu7bn), maturity one month to 30 years,
unsubordinated senior debt
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
issuance By currency (2010)
fitch
AA, outlook stable
GBP
CH F
3%
4%
EU R
93%
Source: La Poste
outstandinG issuance By maturity
€ bn
1.2
1
0.8
0.6
0.4
0.2
0
2 0 1 1
2 0 1 3
2 0 1 4
2 0 1 6
2 0 1 7
2 0 1 8
2 0 1 9
2 0 2 1
2 0 2 3
Data at December 31, 2010.
Source: La Poste
150 EuroWeek Financing supranationals and agencies
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
Source: La Poste
Key recent ratinG
aGency commentary
The ratings reflect La Poste’s (LP) close ties with the
French government and its social, economic and
political importance to the Republic of France (AAA /
stable). LP is 100% owned by the French government
and carries out essential public missions on the
state’s behalf. The French government’s support
was reaffirmed by the 2010 Postal Law, whereby the
French government will retain direct or indirect full
ownership and control of LP after the forthcoming
Eu2.7bn capital injection. The Postal Law appointed
LP as the universal service provider for a period
of 15 years at the national level and restated the
minimum size of the postal network – currently 17,000
outlets. The ratings also factor in the government’s
strong oversight of LP, as the sole shareholder. An
upgrade is contingent upon a stronger link with the
state. However, Fitch deems this unlikely given EU
legislation on state aid that challenged LP’s access
to national liquidity, thereby triggering the agency’s
downgrade in April 2008. Conversely, LP’s ratings
could be downgraded if the links between LP and the
state weaken. Although unlikely, an adverse change in
LP’s legal framework could also trigger a downgrade.
toP BooKrunners
rank lead manager
amount $m no of
issues
% share
1
1
1
Natixis
187
Barclays Capital
187
BNP Paribas
subtotal
total
187
562
562
2
2
2
2
2
33.33
33.33
33.33
100
100
Source: Dealogic (March 16, 2010 to March 15, 2011)
Key recent ratinG
aGency commentary
standard & Poor’s
A, stable outlook
strengths
• Fully state-owned entity with a politically and
• Supportive shareholder that plans to inject Eu2.7
socially crucial role
billion of capital
• Strong market positions in French mail and retail
deposits and in European express
weaknesses
• Poor profitability, partially because of public
service obligations
• Structural decrease in cash generation due to a
decline in mail volumes
• “Significant” financial risk profile
The stable outlook reflects S&P’s expectation
that LP will likely apply a significant share of the
upcoming capital increase to debt reduction, which
should prevent FFO to debt from structurally
deteriorating below its current level.
S&P will closely monitor the announcement on
strategic and financial orientations that it expects as
part of the shareholders’ agreement to be reached
in the coming months prior to the capital increase.
A number of factors, such as weaker performance or
fresh debt accumulation, could bring about renewed
rating pressure. Rating upside is tied to cash flow
growth and is unlikely in the near term.
In the longer term, growing dividends from LBP,
if it realises its ambitious business plan, could
compensate for the structural decline of LP’s cash
flows from mail activities.
total assets
€ bn
200
180
160
140
120
100
80
60
40
20
0
3 1 D ec 0 6
3 1 D ec 0 7
3 1 D ec 0 8
3 1 D ec 0 9
3 1 D ec 1 0
Source: La Poste