Operates in a large industry, characterized by relatively favorable long-term market conditions; and Benefits from scale efficiencies as a fairly large provider of funeral, cremation, and cemetery services and merchandise. Has limited options to meaningfully expand its market for death care services and merchandise; Challenged by difficult demand conditions in North America because of a relatively flat death rate; Faces the increasing consumer preference for cremation services, which generate less revenue than traditional funeral services; and Has a large debt burden, coupled with weak liquidity. The low-speculative-grade rating on Carriage Services Inc. reflects the funeral home operator's significant financial burden in an industry which, though relatively predictable, is subject to operating uncertainties. Carriage's network of 135 funeral homes in 27
