A strong position in the fragmented market for payment processing and merchant acquiring services; High barriers to entry; and Moderate financial policy, predictable cash flow, and solid profitability measures. Competitors and industry consolidation pressure the pricing environment; and Potential for moderate acquisition activity or shareholder-friendly initiatives. The rating on Total System Services Inc. (TSYS) reflects the company's strong position in the fragmented market for payment processing and merchant-acquiring services. This market strength enables the company to generate a sizable stream of recurring revenues and good cash flow; the company had total revenues of about $1.8 billion in 2007. TSYS has a solid presence in the processing of consumer and commercial credit card transactions and should benefit from its expanding market
