Moody’s may upgrade Mitel

Moody’s Investors Service said it placed Mitel Networks Corp.’s B2 corporate family rating on review for possible upgrade, along with B3-PD probability of default rating and Ba3 secured credit facilities ratings.

The upgrade review follows the company’s announced merger with Polycom Inc. in a transaction valued at about $2 billion, Moody’s said.

The review for possible upgrade was prompted by the potential for an improved credit profile once Mitel merges with Polycom, the agency said.

The doubling of revenue to $2.5 billion, enhanced geographic and product diversity, and the de-leveraging nature of the transaction are the drivers of the potential positive rating action, Moody’s said.

The transaction is expected to close in the third quarter of 2016, the agency said.

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