Largest provider of employer-sponsored childcare and back-up care. Long-term contracts with large, established clients. 97% employer-sponsored center client retention. Employer-sponsored model leads to higher EBITDA margins than retail-based peers. Lease-adjusted leverage of about 4.1x on March 31, 2016. Lower capital spending requirements than retail-based peers. Strong cash flow and operating leverage. The stable ratings outlook reflects S&P Global Ratings' expectation that U.S.-based childcare center operator Bright Horizons Family Solutions LLC's revenue EBITDA will grow at a high-single-digit and low-double-digit percentage rate, respectively, in 2016. Meanwhile, we expect leverage to remain in the low-4x area. However, during a recession, we anticipate that leverage could temporarily increase to the mid-4x area before management would be able to bring it back to the
