CDK Global Inc. intends to issue $750 million in senior unsecured notes to repay its unsecured bridge loan, obtained in connection with the company's spin-off from Automatic Data Processing Inc. (ADP). We are assigning our 'BBB-' corporate credit rating to CDK Global Inc. We are also assigning our 'BBB-' issue rating to the company's proposed senior unsecured notes and its existing unsecured revolving credit facility and first-lien term loan. The stable outlook reflects CDK Global Inc.'s market leadership position and our expectation that its recurring revenues will result in solid free cash flow generation. On Oct. 1, 2014, Standard&Poor's Ratings Services assigned its 'BBB-' corporate credit rating to Hoffman Estates, Ill.-based CDK Global Inc. The outlook is stable.
