Columbus, Ga.-based Total System Services Inc. (TSYS) has been spun off from parent Synovus Financial Corp. and is a fully independent company. Standard&Poor's Ratings Services' investment-grade rating on TSYS reflects the company's strong position in the fragmented market for payment processing and merchant acquiring services, which translates into a sizable stream of recurring revenues and good cash flow. With total revenues of about $1.8 billion in 2007, the company has a solid presence in the processing of consumer and commercial credit card transactions and should benefit from its expanding market share in debit, health care, prepaid cards, and loyalty programs. Barriers to entry are high, and key differentiators are its technology, process, and delivery capabilities. Additionally, we expect
