The ratings on Protection One Alarm Monitoring Inc. (PONE) reflect the company's highly leveraged financial profile and second-tier position in the highly competitive and fragmented U.S. security alarm monitoring industry. These factors are further compounded by a weak economic environment. A largely recurring revenue base and good liquidity partially offset these factors. PONE provides electronic security alarm monitoring services to the residential, commercial, and wholesale markets. As of Sept. 30, 2008, the company served more than 1.8 million customers, with more than 90% of its revenue from its recurring monitoring and maintenance contracts. PONE is the No. 3 company in the industry. However, it is estimated to be 10x smaller in revenues than industry leader ADT Security Services Inc. PONE's
