New York, November 09, 2016 -- Moody's Investors Service ("Moody's") downgraded CDK Global, Inc.'s ("CDK") senior unsecured debt ratings to Ba1 from Baa3 and changed the outlook to stable from negative. As part of the rating action, Moody's assigned CDK a Ba1 corporate family rating (CFR), Ba1-PD probability of default rating, and an SGL-1 speculative grade liquidity rating. Given the competitive risks, investment needs, possible acquisitions and shareholder returns, Moody's believes that CDK's financial policies are evolving towards higher financial leverage, which is more consistent with a speculative grade profile.
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