Mitel Networks downgraded to 'D' following Chapter 11 bankruptcy filing: S&P Global

S&P Global Ratings has downgraded Mitel Networks (International) Ltd.'s credit rating from 'CCC' to 'D' following the company's Chapter 11 bankruptcy filing on March 10, 2025. The rating agency also lowered the rating of all debt instruments issued by the company to 'D'. This downgrade is a direct result of Mitel's bankruptcy filing under Chapter 11 of the U.S. Bankruptcy Code, with the company reporting a total debt of approximately $1.28 billion at the time of filing.

The filing stemmed from prolonged weak operational performance characterized by declining revenues and insufficient liquidity to meet debt service obligations and investment needs. S&P Global Ratings anticipates that the bankruptcy filing will not affect the company’s operations, and full payments will be made to suppliers. Mitel Networks Corp. has signed a support agreement with creditors for court-approved recapitalization, including $60 million in new debtor-in-possession financing. Following the restructuring, management projects a reduction in balance sheet debt by about $1.15 billion and an annual cash interest expense decrease of approximately $135 million. S&P Global Ratings indicated it would assign new ratings to the company and its debts post-bankruptcy.