In response to Adecco S.A.'s 2001 earnings release, Standard&Poor's said today that the rating and outlook (BBB+/Stable/--) on the Switzerland-based personnel services group remain unchanged, despite expectations of a continued weak economic environment in first-half 2002. Although Adecco's revenues dropped 12% in the fourth quarter, resulting in a deterioration of the full-year EBIT margin to 4.3%, versus 4.6% in 2000, operating cash flow increased substantially to about SFr1.4 billion ($828.1 million), owing to the positive impact of the activity slowdown on working capital. Adecco reported lease-adjusted measures of EBITDA to net interest of about 6 times, and funds from operations to net debt of more than 30%, in line with Standard&Poor's requirements for the company's rating.
