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 provider Securitas AB reflect Standard&Poor's Ratings services' 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. These strengths are offset to a degree by Securitas' intermediate financial risk profile and the competitive nature of the group's markets. Demand for security services is relatively resilient, despite showing a fair degree of correlation with general economic conditions in
