Standard&Poor's Ratings Services' rating on CB Richard Ellis Services Inc. (CBRE) reflects the company's position as the world's largest commercial real estate (CRE) services company; its historically aggressive financial management, highlighted by weakening debt service coverage and negative tangible equity; and its financial performance and debt service being sensitive to highly-cyclical CRE sales and leasing transaction volume. CBRE is the main operating subsidiary of CB Richard Ellis Group Inc., the recognized leader in the CRE sales and services industry, with annual revenue in excess of $6 billion. CBRE has historically been aggressive in its financial management, especially considering the cyclicality of its business. CBRE has a long history of debt-financed acquisitions, which have greatly increased its scale and
