Ceridian assigned 'B3' corporate family rating with stable outlook - Moody's |
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Wed, 24 Oct 2007 07:08
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MUMBAI (Thomson Financial) - Moody's Investors Service said it has assigned its 'B3' corporate family rating to payroll processing company Ceridian Corp, related to the 5.3 bln usd takeover of the company by private equity firm Thomas H Lee Partners LP and insurance provider Fidelity National Financial Inc.The 'B3' rating is supported by the company's leading position within the US long haul trucking payment processing market, good client diversity, predictable recurring transaction based revenues and high switching costs of its installed user base.However, the rating is constrained by the company's high debt leverage, competition from larger US payroll processors, its small scale in international markets other than Canada, exposure to economic cyclicality in human resources and transportation card servicing businesses and the challenge to consolidate legacy payroll platforms, Moody's said.Moody's has also assigned its 'B1' rating to Ceridian's 2.55 bln usd senior secured credit facilities, and a 'Caa2' rating to its 1 bln usd senior unsecured notes and 300 mln usd senior subordinated notes.The rating outlook is stable and reflects Moody's expectation that the company will achieve moderate EBITDA improvement over the next 12-18 months.A loss of payroll revenue market share or decline in operating profitability could put downward pressure on the ratings, Moody's said.TFN.newsdesk@thomson.comypv/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Ceridian assigned 'B' corporate credit rating with negative outlook - S&P 