S&P upgrades Mitel, loan

Standard & Poor's said it raised its long-term corporate credit rating on Mitel Networks Corp. to B+ from B.

The outlook is positive.

In tandem with this upgrade, the agency raised its issue-level rating on Mitel's $355 million first-lien term loan to BB- from B+. The 2 recovery rating on the loan is unchanged, and indicates an expectation of substantial (70%-90%) recovery for lenders in the event of default.

"The upgrade reflects our view that Mitel is achieving early success integrating Aastra Technologies Ltd., thereby reducing integration risk and bolstering the case that the company's synergy targets will be realized," S&P credit analyst David Fisher said in a news release.

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