Credit quality in the European business services industry remained relatively stable during the second half of 2008, with most segments benefiting from mid-single-digit organic growth rates with stable operating margins. With the exception of U.K. real estate services provider Castle HoldCo 4 and U.K.-based specialized services provider Rentokil Initial PLC, there have been no recent material changes in the credit quality of rated companies in the industry. In 2009 we expect a slowdown in growth, continued cost-cutting efforts, and an increasing focus on financial flexibility among rated entities in the sector. The extent of these changes and their impact will vary relative to each service segment's level of resilience to economic downturns; however, we do not expect material changes in...
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 >