Moody’s rates Ultimate Software facilities B1, Caa1

Moody’s Investors Service said it assigned B1 and Caa1 ratings, respectively, to Ultimate Software Group Inc.’s proposed incremental first-lien and second-lien credit facilities.

Ultimate will use proceeds from the $3.45 billion of incremental credit facilities and a small portion of cash on hand to refinance the outstanding debt at Kronos Inc. Ultimate and Kronos completed an all-stock merger on April 1.

Also, Moody’s upgraded the corporate family rating to B2 from B3 and its existing first-lien credit facilities to B1 from B2.

“The upgrade of the CFR reflects the strong business profile of the combined company focused on the human capital management (HCM) applications software and payroll services market with revenues expected to surpass $3 billion over the next 12 months,” Moody’s said in a press release.

The outlook is stable.

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