Bulletin: Ceridian HCM Holding Inc.'s Additional $150 Million Capital Investment Improves Liquidity And Does Not Affect Ratings

NEW YORK (Standard&Poor's) March 31, 2016--Standard&Poor's Ratings Services said today that Minneapolis-based Ceridian HCM Holding Inc.'s additional $150 million equity raise does not affect our rating our outlook for the company. Ceridian, a global human capital management software provider, announced on March 30, 2016, that it had raised an additional $150 million of equity from its existing shareholders in order to fund continued growth in its cloud-based Dayforce product. Although we view this transaction as improving Ceridian's liquidity and financial flexibility over the next 12 months, we believe that the firm's ongoing business model transition to a cloud-delivery software company will continue to depress margins and will constitute a headwind to revenue growth, although consolidated revenues

...NEW YORK (Standard & Poor's) March 31, 2016--Standard & Poor's Ratings Services said today that Minneapolis-based Ceridian HCM Holding Inc.'s additional $150 million equity raise does not affect our rating our outlook for the company. Ceridian, a global human capital management software provider, announced on March 30, 2016, that it had raised an additional $150 million of equity from its existing shareholders in order to fund continued growth in its cloud-based Dayforce product. Although we view this transaction as improving Ceridian's liquidity and financial flexibility over the next 12 months, we believe that the firm's ongoing business model transition to a cloud-delivery software company will continue to depress margins and will constitute a headwind to revenue growth, although consolidated revenues did grow modestly over the past fiscal year, when adjusted for a strengthened dollar and lower interest income. We forecast that leverage will remain over 9x for the next 24 months. Our...

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