The ratings on U.K.-based Compass Group PLC reflect its leading position in the food-service market, the low capital intensity and capital requirements of its operation and the relative stability of its cash flows. These positive characteristics are partially offset by the competitive nature of the industry as well as the group's moderate financial profile. With continuing annual sales of about £10 billion, Compass remains the world's largest food-service provider. It retains sufficient scale to be competitive in this market, remaining about 17% larger than its closest competitor Sodexho Alliance S.A. (BBB+/Stable/A-2). The group's operations are relatively resilient to economic cycles, with fairly stable free cash generation given limited capital expenditures (about 2% of sales) and contract retention rates close to
