S&P gives Mitel loans B+, CCC+

Standard & Poor's said it affirmed its B long-term corporate credit rating on Mitel Networks Corp. The outlook is negative.

At the same time, S&P assigned its B+ issue-level rating and 2 recovery rating to the company's proposed $200 million term loan B due 2019 and $40 million revolving credit facility due 2018. S&P also assigned its CCC+ issue-level rating and 6 recovery rating to Mitel's proposed $80 million second-lien term loan due 2020. The 2 and 6 recovery ratings reflect the agency's expectation of substantial (70%-90%) and negligible (0%-10%) recovery, respectively, in the event of default.

"We believe the proposed transaction will improve Mitel's debt maturity profile, modestly reduce the company's leverage, and enhance its financial flexibility," said S&P credit analyst David Fisher in a news release.

The ratings on Mitel reflect what S&P views as the company's "vulnerable" business risk profile, "aggressive" financial risk profile and "less-than-adequate" liquidity position.

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