Industry-leading franchise Geographic diversity High debt leverage Revenue dependent on cyclical transaction volume The ratings on CB Richard Ellis Services Inc. (CB Richard Ellis) reflect the company's aggressive capitalization and revenue levels being dependent on cyclical sales and leasing transaction volume. Even after the debt reductions during the past year, acquisition-related debt and goodwill has left the company with a considerable debt burden and negative tangible equity. As the company has paid down about one-quarter of its debt and experienced healthier operating conditions, its interest coverage ratios have improved to a healthy level. CB Richard Ellis is the operating subsidiary of CB Richard Ellis Group Inc., which became a public company in June 2004. The company is based in Los
