S&P cuts Mitel Networks outlook to negative

Standard & Poor's said it revised its outlook on Mitel Networks Corp. to negative from stable.

At the same time, the agency said it affirmed the ratings, including the B long-term corporate credit rating on the company.

The outlook revision reflects its concern that difficult market conditions will lead customers to defer purchasing telecom equipment, thereby driving revenues lower in fiscal 2009.

S&P said that the ratings on Mitel reflect very high debt leverage and correspondingly weak credit metrics; its narrow focus on the small and midsize business telephony market; and its concerns of lower sales as weakened economies lead business customers to defer telecom equipment purchases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.