S&P lowers ADP

S&P said it downgraded Automatic Data Processing Inc.’s issuer and issue-level ratings to AA- from AA, citing expected share buybacks of up to $1 billion.

“The downgrade reflects our expectation for higher sustained leverage as the company adopts a less conservative financial policy to increase shareholder returns. We forecast debt to EBITDA increasing to the 0.5x-to-0.7x range over the next two year (about 0.2x currently) as the company uses proceeds from debt issuance along with excess cash flows to repurchase shares,” the agency said in a press release.

The outlook is stable.

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