Moody’s might downgrade Mitel

Moody's Investors Service said it placed Mitel Networks Corp.’s B2 corporate family rating, B3-PD probability of default rating and B1 senior secured credit facilities ratings on review for possible downgrade.

The action follows the company's announcement that it is being acquired by Searchlight Capital Partners, LP for about $2 billion.

The SGL-2 speculative grade liquidity rating is unchanged.

"The review for downgrade will evaluate the possibility that Mitel's leverage (5.3x after ShoreTel synergies) will exceed 6.5x once the going private transaction closes," Moody's vice president and senior analyst Peter Adu said in a news release.

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