Research Update: Ceridian HCM Holding Inc. 'B-' Rating Placed On CreditWatch Positive On Potential IPO And Debt Repayment; New Debt Rated

Ceridian HCM Holding Inc. plans an IPO, the proceeds of which we expect will be used for debt repayment. As a result, we believe leverage will decline significantly. We are therefore placing our 'B-' long-term corporate credit rating on Ceridian on CreditWatch with positive implications. At the same time, the company is refinancing its first-lien debt outstanding with a proposed US$680 million first-lien term loan; we are assigning our 'B-' issue-level rating and '3' recovery rating to the proposed loan. We plan to resolve the CreditWatch placement on completion of these transactions, which we expect to occur within the next 90 days. On March 26, 2018, S&P Global Ratings placed its 'B-' long-term corporate credit rating on Ceridian HCM Holding

...+ Ceridian HCM Holding Inc. plans an IPO, the proceeds of which we expect will be used for debt repayment. As a result, we believe leverage will decline significantly. + We are therefore placing our 'B-' long-term corporate credit rating on Ceridian on CreditWatch with positive implications. + At the same time, the company is refinancing its first-lien debt outstanding with a proposed US$680 million first-lien term loan; we are assigning our 'B-' issue-level rating and '3' recovery rating to the proposed loan. + We plan to resolve the CreditWatch placement on completion of these transactions, which we expect to occur within the next 90 days....

Research Update