Position as worldwide leader in the food-service industry, with strong positions in Europe, Japan, and the U.S.; Relatively stable and predictable revenues and cash flow, thanks to established brands, long-term average life of contracts, and high renewal rates; Generally good free cash-flow generation, owing to low capital requirements; Very diversified customer base. Limited price flexibility, given low barriers to entry and strong competition from large and local players; Material deterioration of operating performance in the U.K. over the past two years, albeit recently stabilizing; Recently weakened management credibility after significant strategic and management changes; Exposure to fluctuations in food prices; and Moderate financial leverage policy. The ratings on U.K.-based Compass Group PLC reflect its leading positions in the food-service market,
