Moody’s changes CDW outlook to positive

Moody’s Investors Service said it changed its outlook for CDW Corp. to positive from stable and affirmed the Ba1 ratings on the company and the senior unsecured notes that were issued by subsidiary CDW LLC. The speculative grade liquidity rating remains unchanged at SGL-1.

“The outlook change to positive reflects Moody's expectation that CDW will continue its long-term track record of solid operating performance following the successful integration of the Sirius acquisition and adhere to conservative financial policies. Despite the low teens digit net revenue decline so far this year, CDW's leverage continued to improve aided by debt repayments, while adjusted operating margin reached a record high of 8% for the LTM September 2023,” the agency said in a press release.

The agency added, “If CDW continues to demonstrate a commitment to a balanced and disciplined capital allocation policy with moderate leverage, Moody's could upgrade the ratings.”

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