CDK Global II LLC (CDK) has minimal room in credit metrics for underperformance as the company accelerates investments to support product initiatives and has greater calls on cash flow due to large payouts for litigation settlement. We believe competition is intensifying and could lead to pricing pressures, so CDK might be challenged to strengthen net customer retention rates. As a result, S&P Global Ratings revised the outlook to negative from stable and affirmed all of its ratings on CDK, including its ?B+? issuer credit rating. The negative outlook reflects our view that CDK?s credit profile could deteriorate more meaningfully if measures to restore top-line metrics and profitability do not materialize sufficiently to bring leverage metrics to appropriate levels for the
