Fitch ups Avaya loan to BB-/RR2

Fitch Ratings said it affirmed Avaya Inc.’s B long-term issuer default rating and upgraded its senior secured first-lien term loan ($2.9 billion outstanding) to BB-/RR2 from B+/RR3.

The outlook is stable.

Fitch said the upgrade of the term loan reflects improved recovery prospects following better than expected performance vis-a-vis the agency’s original base rating case following the company's emergence from bankruptcy in December 2017.

Fitch's current base case reflects and estimates fiscal 2018 EBITDA to be in the $725 million to $745 million range, up from the mid-$600 million area previously.

Through the first half of fiscal 2018, the agency calculated that Avaya has generated EBITDA of $367 million.

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