Although growth rates in the European business services industry were hindered by the economic slowdown, the credit quality of rated sector players remained relatively stable during the first half of 2009. As Standard & Poor's Ratings Services anticipated in previous industry report cards, top-line pressures prevailed among the bulk of our rated entities, which posted low-single-digit growth rates during the first half of 2009 compared with the historical mid-single-digit rates. However, the squeeze on operating margins throughout the first half was lessened by the relative cost-base flexibility inherent among most European service providers. Moreover, except for companies operating in the more cyclical segments of U.K. real estate services, personnel services, and airline catering, no changes in the credit quality of...
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
- G4S PLC
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 >