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Prosegur (PSGSM; NR/BBB Neg) S&P moves to neg outlook

CONSUMER CYCLICALS

Negative outlook not on headline growth (sees organic +4-6% over next 2 years) but on leverage sitting a tad outside rating thresholds and weak cash flow to BS on high investments.

29s look well bid in vs. Securitas (NR/BBB Stable) - 20bp pickup there. Securitas is larger scale (3x) with similar margins but less exposed to cash management which it spun-off under {LOOMIS SS Equity}.

1H earnings for PSGSM tomorrow.

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