Moody's changes Mitel to negative

Moody's Investors Service said it changed Mitel Networks Corp.'s outlook to negative from stable and downgraded the speculative grade liquidity rating back to SGL-4 from SGL-2.

Moody's said the changes follow reports that refinance activities had been suspended.

As part of the same action, Mitel's probability of default rating was upgraded back to B3 from Caa1 and ratings of the previously proposed credit facilities were withdrawn.

The B3 corporate family rating, B1 senior secured credit facility rating and Caa1 senior secured second-lien term loan ratings were affirmed.

Moody's said the outlook is negative because of heightened refinance risks related to the August 2014 maturity of Mitel's term loan and the potential for a covenant breach.

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