Research Update: Securitas 'BBB/A-2' Ratings Affirmed On Improved Liquidity; Outlook Stable

Security services provider Securitas AB (publ)'s liquidity position has improved after the refinancing of its February 2024 debt maturities. We therefore revised our liquidity assessment on the company to strong from adequate. We affirmed our 'BBB/A-2' long- and short-term ratings, and our 'K-2' Nordic scale rating on Securitas AB and its subsidiary Securitas Treasury Ireland Designated Activity Company and our 'BBB' issue ratings on the group's senior unsecured notes. The stable outlook reflects our expectation that positive organic growth and margin improvements, combined with strong free operating cash flow (FOCF) will support debt to EBITDA below 3.5x and funds from operations (FFO) to debt above 25% in the next 24 months. In February 2024, Securitas? financing subsidiary Securitas Treasury Ireland

...Foreign currency issuer credit rating ###/Stable/A-2 Local currency issuer credit rating ###/Stable/A-2 Business risk Strong Country risk Very Low Industry risk Intermediate Competitive position Strong Financial risk Significant Cash flow/leverage Significant Anchor ### Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ###...

Research Update