S&P puts Mitel Networks on watch

Standard & Poor’s said it placed its ratings on Mitel Networks Corp., including its B+ long-term corporate credit rating on the company, on CreditWatch with negative implications.

“The CreditWatch placement follows recent financial results that have been materially weaker than our expectations due to ongoing competitive pressures in the telephony business, foreign exchange headwinds related to the company’s large European presence, and slower-than-expected product deployments at customers of the company's mobile division,” said S&P credit analyst David Fisher in a news release. “We believe the shortfall in operating performance has caused covenant headroom to tighten significantly.”

“We understand that management is working on measures to provide near-term covenant relief,” the agency said.

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