S&P upgrades Mitel Networks

Standard & Poor's said it raised Mitel Networks Corp.'s long-term corporate credit rating to B from B- and the rating on its $330 million first-lien facilities due 2014, including a $30 million operating revolver, to BB- from B, reflecting the combination of a higher corporate credit rating and revised recovery ratings. The recovery rating on the first-lien debt was revised to 1, reflecting an expectation of 90% to 100% recovery in the event of default, from 2.

The agency also said it upgraded the company's $130 million second-lien bank facility to CCC+ from CCC. The recovery rating is unchanged at 6, indicating that lenders can expect 0% to 10% recovery in the event of payment default.

The outlook is stable.

The upgrade follows the completion of Mitel's initial public offering of its shares for gross proceeds of about $150 million, S&P said.

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