Moody’s assigns B1 to Avaya loan

Moody's Investors Service said it assigned a B1 rating to Avaya, Inc.'s proposed senior secured first-lien term loan B-7 maturing in 2020.

Existing ratings, including the B3 corporate family rating, are not impacted.

The outlook remains negative.

The new term loan will be used to refinance a portion of the $3.2 billion of existing term loans maturing in 2017 and 2018.

The proposed term loan will be rated the same as the existing term loans. The B1 rating on the proposed senior secured term loan is determined in conjunction with Moody's Loss Given Default Methodology and reflects its senior position in the capital structure ahead of its second-lien notes, pensions and a substantial portion of its payables, the agency said.

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