S&P: Avaya on watch

Standard & Poor's said it placed its ratings, including the B corporate credit rating, on Avaya Inc. on Creditwatch with negative implications, following the company's announcement that it has been accepted as the buyer of Nortel Networks Corp.'s (not rated) Enterprise Solutions businesses, for $900 million.

"The Creditwatch listing reflects the company's announcement that it has been accepted as the buyer of Nortel Networks' Enterprise Solutions businesses for $900 million," said S&P credit analyst Bruce Hyman.

As a privately held company, Avaya has not disclosed its financing plans for the acquisition, nor have its financial results been disclosed, the agency said.

"Still," added Hyman, "the financing would likely entail some increase in debt and/or reduction in liquidity, while integration of the acquisition could be challenging."

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