CDK Global II LLC (CDK) announced softer-than-expected operating results for first-quarter 2025 with higher customer churn decelerating the business improvement we previously anticipated. S&P Global Ratings is now more confident that CDK will take longer to upshift performance trends to pre-cyber incident levels, leading to a lengthened period of elevated leverage and tight interest coverage. As a result, we lowered all ratings on CDK, including the issuer credit rating to ?B-? from ?B+?. The stable outlook reflects our expectations that the company will maintain sufficient revolver availability, with modest temporary draws, as it navigates a path that includes product and marketing initiatives to strengthen operations. Since our last rating action in Feb. 2025, higher churn rates and a larger EBITDA
