The rating on U.K.-based Compass Group PLC reflects its leading positions in the food-service market, as well as the predictability and relative stability of its cash flow. These positive characteristics are partially offset by the competitive nature of the industry, as well as the group's acquisitive orientation and increasing pressure for higher shareholder returns. With sales of about £12.7 billion in fiscal 2005 (ended Sept. 30), Compass is the world's largest food-service provider. It is present in the contract, concession, and vending businesses. Its contract-catering operations accounted for about 71% of total fiscal 2005 sales; this is a field in which Compass ranks among the top three players in most countries where it operates. The group also provides food and
