The ratings on U.K.-based Compass Group PLC reflect its leading position in the food service industry, its low capital requirements, and its relatively stable cash flows. These positive characteristics are partially offset by the competitive nature of the industry as well as the group's moderate financial profile. At the end of September 2008, total reported debt was £1.6 billion. With annual sales of £11.4 billion in the financial year ended Sept. 30, 2008, Compass is the world's largest food service providers. It retains sufficient scale to be competitive in this market and is about 13% larger than its closest competitor, Sodexo (BBB+/Stable/A-2), at the two firms' respective financial year-end dates for 2008. Compass' operations are relatively resilient against economic cycles,
