Credit quality in the European business services industry remained constant during the first half of 2008, with most segments benefiting from mid-single-digit organic growth rates with stable, if not improving, operating margins. There have been no recent material changes in the credit quality of rated companies in the industry, and ratings are likely to remain stable in the short term, barring any unexpected events. Following the acquisitive growth witnessed toward year-end 2007 and in early 2008, and given continued healthy cash flow generation, a number of service companies have initiated share buybacks to use some of the flexibility they retain within current rating levels. Share buyback initiatives were announced by Adecco S.A., Sodexo, and Compass Group PLC toward year-end 2007...
Companies mentioned in this report are:
- Adecco S.A.
- Experian Finance PLC
- Securitas AB
- Compass Group PLC
- gategroup Financial Services S.a.r.l
- Rentokil Initial PLC
- ISS A/S
- Castle HoldCo 4
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >