S&P Global Ratings assigned its'B-'issuer credit rating to Dayforce Inc. (the surviving entity following the merger between Dayforce Inc. and Dayforce Bidco) following its acquisition by Thoma Bravo, reflecting both its high leverage and strong recurring revenue base. We expect S&P Global Ratings-adjusted leverage will remain elevated at more than 8x through 2027 and free operating cash flow (FOCF) will be negative this year before turning positive in 2027. The issue-level rating on the debt assumed from Dayforce Bidco LLC is unchanged at'B-', with a'3'recovery rating, comprising a $5.5 billion first-lien term loan due 2033 and $500 million revolving credit facility due 2031. The stable outlook reflects Dayforce's consistent operating profitability, highly recurring revenue stemming
