The rating on Compass Group PLC's primarily reflects the company's leading positions in the food-service market, as well as the predictability and stability of its cash flow. These positive characteristics are partially offset by Compass' acquisitive orientation. Sixty-five percent of Compass' sales (£10.6 billion) in fiscal 2002 (ending in September) was generated by its contract-catering operations. Compass ranks among the top three players in this field in most countries where it operates. The group also provides food and related services under concession agreements at motorway and roadside sites (7% of fiscal 2002 sales)--an area in which it is the U.K.'s largest player--as well as airports and railway stations (18%). The remaining 10% of sales was derived from Compass' vending-machine business,
