The ratings on Adecco S.A., a Switzerland-based personnel-services group, reflect its: position and scale as the worldwide leader in the staffing industry; cost discipline; leading presence in high-margin, specialized staffing; and moderate financial policy. These factors are partially offset by the staffing industry's cyclicality and intensive working-capital requirements. At June 30, 2006, Adecco had total debt of €1.5 billion. Adecco recorded revenues of €9.8 billion in the first half of 2006, reflecting 12% organic growth. The group posted healthy growth of 10%-27% through all its new business lines (a geographical structure with six professional business lines). This, combined with a growing contribution from the professional staffing and permanent placement business, improved gross and EBITA margins by 60 basis points (bps)
