S&P assigns B- to Ceridian loans

Standard & Poor's said it affirmed its B- corporate credit rating on Ceridian LLC.

The outlook is stable.

At the same time, the agency assigned a B- issue rating with a recovery rating of 3 to the proposed $673 million of term loan B-1 tranche due 2017, co-issued with its subsidiary Comdata Inc.

In addition, S&P assigned a B- rating with a recovery rating of 3 to Ceridian’s proposed $702 million term loan B-2 tranche due 2020 and the proposed $125 million traveling Ceridian HCM revolver due as late as 2019 co-issued with its subsidiary Ceridian HCM Holding Inc.

All issue-level ratings on the company's existing debt were affirmed.

"Our B- corporate credit rating on Ceridian reflects the company's ‘fair’ business risk profile based on its moderate position in a highly competitive market, and its 'highly leveraged' financial risk profile based on its high level of debt," S&P credit analyst Jacob Schlanger said in a news release.

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