S&P Global Ratings upgraded Japan-based Recruit Holdings Co. Ltd.'s long-term issuer credit rating to A from A-, with a stable outlook, based on its flourishing online human resource services business.
The decision reflects the rating agency's view that Recruit's prospering internet-based human resource services business, and its U.S. subsidiary Indeed Inc. will enhance its competitiveness as an online job-matching service and an IT systems provider, and improve its financial performance.
The stable outlook is based on S&P's assessment that the company's new and existing core businesses will generate solid profits and ensure a stable financial base. Recruit's EBITDA rose 10% annually for three years, and S&P believes the company will improve its EBITDA margin to 15% in the next two to three years.
