Moody's rates Mitel loan B1

Moody's Investors Service said it rated Mitel Networks Corp.'s new $330 million credit facilities B1. The agency also affirmed the company's corporate family rating at B3.

Moody's upgraded the speculative grade liquidity rating to SGL-2 from SGL-4 and revised the probability of default rating to Caa1 from B3.

The outlook remains stable.

Moody's said the new credit facilities benefit from a comprehensive security package that causes their rating to be notched-up from the B3 corporate family rating. However, since the refinance transaction increases the proportion of liabilities that have a first-ranking security position while eliminating the loss absorption capacity provided by company's second lien loan, the benefit of the security package is limited to two notches at B1.

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