Securitas is the world's second-largest security services provider by total revenues. The security services market is relatively resilient to the economic cycle. Competitive and fragmented industry with low entry barriers leading to modest EBITDA margins. Successful track record of integrating acquisitions. Low capital expenditure (capex) requirements. "Strong" liquidity position. Stretched balance sheet due to debt-financed acquisitions. The stable outlook reflects our view that Securitas will continue to benefit from robust free operating cash flow (FOCF) as a result of its limited capex and continued improvement in working capital. Nevertheless, we think that the group's overall revenue growth and operating margin in 2013 will remain somewhat lower than previously, owing to challenging economic conditions in its European markets. We could lower
