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 company Securitas AB reflect our view of the company'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, the ratings are constrained by our assessment of Securitas' "intermediate" financial risk profile and the competitive nature of the company's markets. Demand for security services is relatively resilient, despite showing a fair degree of correlation to general economic conditions in recent months. Although
