The ratings on Switzerland-headquartered Adecco S.A. reflect Standard&Poor's Ratings Services' view of its "satisfactory" business risk profile. This is supported by the group's leading position in the global staffing industry, widespread geographic coverage, and a strong presence in the fairly high-margin sub-segment of specialized and professional staffing. Further support for the rating comes from Adecco's moderate financial policy and "intermediate" financial risk profile, underpinned by generally healthy cash flow generation and low capital expenditure (capex) requirements. These factors are partially offset by the staffing industry's cyclical and competitive nature, low barriers to entry, and the resulting constrained pricing flexibility. Economic uncertainty in established markets like Europe could, in our view, result in increased cyclicality of revenues. Additionally, the
