Cornerstone OnDemand Inc. Upgraded To 'B+' On Stable Performance Through Pandemic And Saba Acquisition; Outlook Stable

Talent management software provider Cornerstone OnDemand Inc. has performed well through the macroeconomic effect of the COVID-19 pandemic and its acquisition of Saba Software Inc. Cornerstone generated good organic revenue growth and paid down debt, which reduced leverage below 5x in 2020. We are raising our issuer credit rating on Cornerstone to 'B+'. The outlook remains stable. We are also raising our issue-level rating on the company's revolving credit facility and first-lien term loan to 'B+'. The '3' recovery rating is unchanged. The stable outlook reflects our expectation that Cornerstone will have stable performance through continued macroeconomic effects of the COVID-19 pandemic and its cost-savings plan. We expect good organic revenue growth on strong demand from its subscription revenue base

...March 2, 2021 - Talent management software provider Cornerstone OnDemand Inc. has performed well through the macroeconomic effect of the COVID-19 pandemic and its acquisition of Saba Software Inc. - Cornerstone generated good organic revenue growth and paid down debt, which reduced leverage below 5x in 2020. - We are raising our issuer credit rating on Cornerstone to 'B+'. The outlook remains stable. - We are also raising our issue-level rating on the company's revolving credit facility and first-lien term loan to 'B+'. The '3' recovery rating is unchanged. - The stable outlook reflects our expectation that Cornerstone will have stable performance through continued macroeconomic effects of the COVID-19 pandemic and its cost-savings plan. We expect good organic revenue growth on strong demand from its subscription revenue base to help drive leverage to the mid-4x area in 2021. NEW YORK (S&P Global Ratings) March 2, 2021--S&P Global Ratings today took the rating actions listed above. Growth...

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