S&P lifts Securitas view to positive

Standard & Poor’s said it revised the outlook on Securitas AB to positive from stable.

The agency also said it affirmed the BBB long-term and A-2 short-term corporate credit ratings and the K-2 Nordic national scale short-term rating on the company.

S&P also said it affirmed the BBB rating on the company’s €2 billion euro medium-term note program, €300 million notes due 2018, €350 million notes due 2017 and €350 million notes due 2021.

The actions indicate that Securitas continues to benefit from the restructuring and cost savings programs it undertook in prior years, which resulted in an improved operating performance, the agency said.

The company’s profitability is backed by strong operating efficiency and supported by a track record of high retention rates and very flexible cost base, S&P said.

This is expected to lead to high cash generation and a reduction in leverage levels, which will lead to a sustained improvement in credit measures, the agency said.

Its business risk profile is constrained by operating in the highly fragmented security services industry, where low barriers to entry and strong competition limit pricing flexibility, S&P said.

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