The counterparty credit rating on Asurion LLC (formerly known as Asurion Corp.) reflects its significant leverage and fluctuating credit metrics, which resulted in a leveraged balance sheet; its financial management strategy; and its dependence on new subscribers and contract renewals, which could challenge the sustainability of its leading competitive position. Offsetting these weaknesses are Asurion's operating performance, which is a key strength to the rating, and its cash generating capabilities (as measured by revenue and EBITDA), which support the company's deleveraging capabilities despite difficult market conditions. In addition, Asurion has a well-integrated and effective business model and an experienced and knowledgeable management team with a long and effective track record in the handset protection market. Asurion is one of the
