Standard & Poor's Rating Services views European business services as a relatively stable segment, one with a low capital intensity that offers service providers continued growth opportunities and healthy free cash flow generation. On the downside, the industry's relatively low barriers to entry lead to fragmented markets and price competition. Service providers are also exposed to the general economic conditions that affect their clients to varying degrees. For example, staffing services are more susceptible to economic downturns than caterers. Rated companies within the business services segment tend to be of average credit quality. This is reflected in the median long-term corporate credit rating, which is in the 'BBB' category. The business services industry encompasses a wide range of niche areas,...
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 >