Hoffman Estates, Ill.-based auto dealer information technology (IT) solutions provider CDK Global Inc. announced that it has entered into a definitive agreement to be acquired by Brookfield Business Partners and a group of its institutional partners (collectively "Brookfield") for a total enterprise value of $8.3 billion. We placed our 'BB+' long-term issuer credit rating on CDK Global on CreditWatch with negative implications. The CreditWatch placement reflects our view that the company's credit profile will deteriorate due to the anticipated increase in its debt following the transaction. We expect to resolve the CreditWatch once we complete a detailed review of CDK's proposed capital structure and business prospects. The CreditWatch negative placement reflects the elevated likelihood that we will lower our long-term
