Moody’s gives Ba1 to CDK Global notes

Moody's Investors Service said it assigned a Ba1 rating to CDK Global, Inc.'s senior unsecured notes due 2027.

The outlook is stable.

The company intends to use the net proceeds for general corporate purposes.

Moody’s said the Ba1 corporate family rating reflects CDK's leading U.S. market position as a provider of technology and services to the automotive retail dealer community, consistent annual free cash flow generation of over $200 million expected over the next few fiscal years and the agency’s expectation of significant cost savings from its business transformation plan. The company has successfully separated from ADP and built out its own supporting operations, reducing overall operational risk as a standalone company.

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