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. Pricing pressure due to competitors and industry consolidation; and Potential for moderate acquisition activity or shareholder-friendly initiatives. The rating on Columbus, Ga.-based 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 revenues approaching $2 billion in fiscal 2008. TSYS has a solid presence in the processing of consumer and commercial credit card transactions and should benefit from its expanding market share in
