Research Update: Ceridian HCM Holding Inc.Outlook Revised To Stable From Negative On Strong Growth Strategy

Minnesota-based Ceridian HCM Holding Inc. (Ceridian), a cloud-based human capital management (HCM) provider, is expected to experience robust EBITDA fueled by its growth strategy over the next 12 months. Further supporting the company's 2021 operating performance are improving macroeconomic conditions and secular tailwinds in the underlying cloud-based HCM industry. As a result, we anticipate Ceridian's net leverage measures will be about 4.5x-5.0x over the next 12 months, pro forma the debt-funded acquisition of Ascender HCM Pty Ltd. Therefore, on March 2, 2021, S&P Global Ratings revised its outlook on Ceridian to stable from negative and affirmed its 'B+' issuer credit rating on the company. At the same time, we affirmed our 'B+' issue-level rating on the company's senior secured debt.

...- Minnesota-based Ceridian HCM Holding Inc. (Ceridian), a cloud-based human capital management (HCM) provider, is expected to experience robust EBITDA fueled by its growth strategy over the next 12 months. - Further supporting the company's 2021 operating performance are improving macroeconomic conditions and secular tailwinds in the underlying cloud-based HCM industry. As a result, we anticipate Ceridian's net leverage measures will be about 4.5x-5.0x over the next 12 months, pro forma the debt-funded acquisition of Ascender HCM Pty Ltd. - Therefore, on March 2, 2021, S&P Global Ratings revised its outlook on Ceridian to stable from negative and affirmed its 'B+' issuer credit rating on the company. - At the same time, we affirmed our 'B+' issue-level rating on the company's senior secured debt. The '3' recovery rating is unchanged but we have revised the recovery prospects on the debt to 65% from 55%. - The stable outlook reflects our view that Ceridian will be able to generate strengthening...

Research Update