The global broking industry has received a strong report card from Moody’s Investor Services.

“The… industry remains healthy based on its valuable service offering and steady cashflow, supported by a largely variable cost structure,” the ratings agency says.

The largest publicly traded brokers have been reducing debt and the industry generally has modest capital requirements and low balance sheet risk, according to the report.

Challenges include potential liabilities from errors and omissions and high debt among private brokers that have borrowed to fund buyouts.

Some companies also face integration risk from acquisitions, Moody’s says.