Current ratings reflect CB Richard Ellis Services Inc.'s (CB Richard Ellis) aggressive capitalization and debt service coverage being dependent on cyclical sales and leasing transaction volume. Substantial acquisition and transaction-related goodwill has left the company with a considerable debt burden and negative tangible equity. The positive outlook was assigned on Feb. 17, 2004, in response to the company's announcement of plans to raise capital in an initial public common stock offering. Management plans to use the majority of the company's share of the proceeds to decrease debt. While this is a positive for the company's credit, to be upgraded, the company must also demonstrate over time increased EBITDA and a commitment to restore and maintain tangible capital at levels consistent
