Worldwide leader in the personnel services industry. Strong brand. Commitment to maintaining a significant network, despite the market downturn. Maintenance of moderate debt levels thanks to countercyclicality in operating cash flow and moderation in capital expenditures and dividend. Low-margin, highly cyclical, and working capital-intensive industry. Possible further erosion of profitability, placing additional pressure on debt measures. The rating and outlook on the Switzerland-based personnel services group Adecco S.A. reflect the continuing weak demand for temporary staffing and pricing pressures. At March 31, 2003, Adecco had €1.6 billion of debt. Adecco's EBIT was flat at constant currency rates in the first quarter of 2003, but fell by 11% in euro terms, mainly as a result of the weak dollar. North America
