Research Update: Ceridian HCM Holding Inc. Upgraded To 'B' From 'B-' On Leverage Reduction Following IPO; Outlook Stable

On April 30, 2018, Ceridian HCM Holding Inc. completed its IPO with gross proceeds of about US$631 million. The company intends to use the proceeds to reduce debt, leading to a meaningful reduction in leverage. Therefore, we are raising our long-term corporate credit and senior secured debt ratings to 'B' from 'B-', and removing the ratings from CreditWatch, where they were placed with positive implications March 26. The stable outlook reflects our view that the company can maintain adjusted debt-to-EBITDA of about 6x over the next 12 months as it scales its cloud-based human capital management solutions while managing the erosion of its legacy business. On May 1, 2018, S&P Global Ratings raised its long-term corporate credit and senior secured

...+ On April 30, 2018, Ceridian HCM Holding Inc. completed its IPO with gross proceeds of about US$631 million. + The company intends to use the proceeds to reduce debt, leading to a meaningful reduction in leverage. + Therefore, we are raising our long-term corporate credit and senior secured debt ratings to 'B' from 'B-', and removing the ratings from CreditWatch, where they were placed with positive implications March 26. + The stable outlook reflects our view that the company can maintain adjusted debt-to-EBITDA of about 6x over the next 12 months as it scales its cloud-based human capital management solutions while managing the erosion of its legacy business....

Research Update