S&P lowers Avaya

Standard & Poor's said it lowered its corporate credit rating on Avaya Inc. to B- from B.

At the same time, the agency said it removed the rating from Creditwatch with negative implications, where they had been placed on Sept. 14.

The agency said it also assigned a B rating with a 2 recovery rating to the company's newly issued term loan B-2, proceeds of which were used to finance the acquisition of Nortel Networks Corp.'s Enterprise Solutions businesses.

The outlook is negative.

"The action reflects Avaya's increasing leverage and the challenges the company is likely to face integrating the recently acquired NES business," said S&P credit analyst Bruce Hyman.

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