OREANDA-NEWS. Fitch Ratings has affirmed Garda World Security Corporation's (GW) Issuer Default Rating (IDR) at 'B+'. In addition, Fitch has affirmed GW's senior secured credit facility at 'BB+/RR1' and senior unsecured notes at 'B-/RR6'. The Rating Outlook is Stable. Approximately CAD2 billion of outstanding debt is covered by Fitch's ratings.

GW's ratings are supported by the firm's significant market position, consistent and improving operating margins, and low capital intensity. Following a period of rapid acquisition-fuelled growth, GW is currently focused on harvesting operational improvements and synergies evidenced by its improved margins and cash flow levels. Fitch expects GW to generate roughly CAD80 million of FCF in calendar 2016, which would be a roughly 3% FCF margin. On July 31, 2016, Rhone Capital acquired 45% of the outstanding shares of GW from Apax Partners and certain management stockholders of GW. Following the transaction, Apax and Stephan Cretier (Founder, Chairman and CEO of GW) will continue to hold a majority of the shares of GW and appoint 60% of the Board of Directors. Fitch does not expect the new equity injection to significantly affect the firm's medium-term strategy as GW remains focused on developing its newly integrated platforms with business development and operational efficiency initiatives.