Leading market position in core businesses Geographic diversification Strong track record of integrating acquisitions Good free operating cash flow generation Stretched balance sheet due to debt-financed acquisitions Competitive and fragmented markets, especially in the U.S. security services markets The ratings on Sweden-based security services group Securitas AB reflect the group's position as the world leader in the relatively recession resilient security services market, its diversified customer base, strong geographic coverage, and solid track record. However, they are constrained by Securitas' intermediate financial risk profile and the competitive nature of the group's markets. Demand for security services is relatively resilient to recession, although in the U.S. it has a greater correlation to general economic conditions. Although slowly consolidating, the industry is
