Leading market position in core businesses. Geographical diversification. Strong track record of integrating acquisitions. Good free operating cash flow generation. Stretched balance sheet due to debt-financed acquisitions. Competitive U.S. security services markets. The ratings on Sweden-based Securitas AB reflect the company's position as the world leader in the security services market, its diversified customer base, strong geographical coverage, a solid track record, and its intermediate financial profile. At Sept. 30, 2005, Securitas had net debt of about Swedish krona (Skr) 12.6 billion ($1.5 billion). Demand for security services is moderately cyclical. Although slowly consolidating, the industry is highly fragmented, and Securitas, which is the market leader in both Europe and North America, has less than 10% of the world market.
