UKG Inc. — Moody’s changes UKG’s ratings outlook to negative; affirms B2 CFR

Rating Action: Moody’s changes UKG’s ratings outlook to negative; affirms B2 CFRGlobal Credit Research – 22 Dec 2021New York, December 22, 2021 — Moody’s Investors Service (“Moody’s”) affirmed UKG Inc.’s (UKG) existing ratings, including its B2 Corporate Family Rating (CFR) and the B1 and Caa1 ratings for its 1st lien and 2nd lien credit facilities, respectively, and changed the ratings outlook to negative, from stable. The rating action was prompted by the cybersecurity incident that affected certain parts of UKG’s business, the impact of which could further pressure the company’s already weak credit metrics.Affirmations:..Issuer: UKG Inc….. Corporate Family Rating, Affirmed B2…. Probability of Default Rating, Affirmed B2-PD….Senior Secured 1st Lien Term Loan, Affirmed B1 (LGD3)….Senior Secured 1st Lien Revolving Credit Facility, Affirmed B1 (LGD3)….Senior Secured 2nd Lien Term Loan, Affirmed Caa1 (LGD6)Outlook Actions:..Issuer: UKG Inc…..Outlook, Changed To Negative From StableRATINGS RATIONALEUKG reported that it became aware of a ransomware incident on December 11, 2021, that affected Kronos Private Cloud–the environment where some of its UKG Workforce Central, UKG TeleStaff, Healthcare Extensions, and Banking Scheduling Solutions are deployed. The company currently estimates that only a limited number of customers that use the affected solutions (which are hosted on third-party data centers) are affected. UKG’s customers using affected solutions are…