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Recovery Report: Avaya Inc.'s Recovery Rating Profile Jun 11
Standard & Poors, June 2011
Standard & Poor's Ratings Services is updating its recovery analysis on business communications systems provider Avaya Inc. as part of ongoing surveillance. The company's issue-level and recovery ratings remain unchanged. Our simulated default scenario contemplates a default occurring in 2014 due to rising pricing pressure, coupled with limited growth prospects and maturing technologies. In February 2011, the company amended its senior secured credit facilities. The modifications included extending the maturity of $2.2 billion of the term loan B-1 from October 2014 to October 2017 and converting such loans into a B-3 tranche. The maturity of the new tranche could potentially spring to July 2015 unless the total net leverage ratio is less than 5x, or on or prior to such...
Companies mentioned in this report are: Avaya Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis