Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable

Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable
Published Feb 12, 2024
9 pages (3582 words) — Published Feb 12, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Minneapolis-based human capital management (HCM) software provider Dayforce Inc. (previously Ceridian HCM Holding Inc.) continues to show positive momentum. Demand for Dayforce's solutions has remained sturdy, and we forecast its strong recurring cloud revenue growth will support further deleveraging over the next 12-24 months. At the same time, we believe the enterprise segment expansion with scale improvement in adjacent markets will support Dayforce's growth strategies. As a result, we forecast Dayforce's S&P Global Ratings' adjusted debt to EBITDA will be about 2.5x in 2024 and below 2.0x in 2025. Consequently, we revised our assessment of Dayforce's financial risk profile to significant from aggressive. We also raised our issuer credit rating on Dayforce to 'BB-' from 'B+'. At the same time,

  
Brief Excerpt:

...- Minneapolis-based human capital management (HCM) software provider Dayforce Inc. (previously Ceridian HCM Holding Inc.) continues to show positive momentum. Demand for Dayforce's solutions has remained sturdy, and we forecast its strong recurring cloud revenue growth will support further deleveraging over the next 12-24 months. At the same time, we believe the enterprise segment expansion with scale improvement in adjacent markets will support Dayforce's growth strategies. - As a result, we forecast Dayforce's S&P Global Ratings' adjusted debt to EBITDA will be about 2.5x in 2024 and below 2.0x in 2025. Consequently, we revised our assessment of Dayforce's financial risk profile to significant from aggressive. - We also raised our issuer credit rating on Dayforce to '##-' from 'B+'. At the same time, we also raised our issue-level ratings on the company's revolver to '##-' from 'B+'. - Additionally, we assigned a '##-' rating and '3' recovery rating (65% recovery) to Dayforce's proposed...

  
Report Type:

Research Update

Issuer
Dayforce Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable" Feb 12, 2024. Alacra Store. Nov 06, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dayforce-Inc-Upgraded-To-BB-From-B-On-Improved-Credit-Measures-And-Continued-Cash-Flow-Generation-Outlook-Stable-3124377>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Dayforce Inc. Upgraded To 'BB-' From 'B+' On Improved Credit Measures And Continued Cash Flow Generation; Outlook Stable Feb 12, 2024. New York, NY: Alacra Store. Retrieved Nov 06, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dayforce-Inc-Upgraded-To-BB-From-B-On-Improved-Credit-Measures-And-Continued-Cash-Flow-Generation-Outlook-Stable-3124377>
  
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