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Ultimate Software Group, Inc. (The) -- Moody's assigns first-time B3 CFR to Ultimate Software; outlook positive

Moody's Investors Service (Moody's) assigned to The Ultimate Software Group, Inc. (Ultimate) a B3 Corporate Family Rating (CFR), B3-PD Probability of Default Rating, and B2 ratings to the company's proposed first lien credit facilities comprising a $275 million revolving credit facility and $2.3 billion of term loans. The B3 rating reflects Ultimate's very high financial risk profile, including very high initial financial leverage of around 9x (including change in deferred revenues and Moody's standard analytical adjustments), modestly positive free cash flow over the next 12 to 18 months and adequate liquidity. Notwithstanding these credit strengths, Ultimate's high debt burden will limit its financial flexibility, especially relative to its key competitors and amid large growth opportunities in an evolving market.