Tempo Acquisition LLC announced its plan to divest their professional services and Human Capital Management and payroll outsourcing businesses in a transaction valued at $1.2 billion. In connection with the transaction, management has committed to using some of the proceeds to pay down debt, which could improve S&P Global Ratings-adjusted debt to EBITDA by about half a turn to under 5.0x. The CreditWatch placement reflects our view that the potential transaction will likely result in a stronger credit profile for the stand-alone entity. This is due to the expected deleveraging from debt reduction with potentially more stability in revenue and higher margins, which could result in a ratings upgrade if the transaction closes as planned. Resolution of the CreditWatch will
