DBRS Discontinues Ratings on Nortel Networks Limited, Nortel Networks Corporation and Nortel Networks Capital Corporation
DBRS has today discontinued its ratings of Nortel Networks Limited, Nortel Networks Corporation and Nortel Networks Capital Corporation (collectively, Nortel or the Company). All outstanding ratings have been withdrawn, along with coverage of the Company.
On January 14, 2009, Nortel filed under the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 11 of the U.S. Bankruptcy Code in the United States in an effort to restructure. Since then, Nortel has commenced sales of certain assets, including the US$1.13 billion sale of its wireless business to Sweden’s LM Ericsson, and the US$900 million sale of its enterprise division to New Jersey-based Avaya Inc. It also recently put its Packet Core Assets (as part of its Carrier Networks business) up for sale by way of auction.
Ratings
| Issuer | Debt Rated | Rating Action | Rating | Trend | Recovery Rating | Notes | Published |
|---|---|---|---|---|---|---|---|
| Nortel Networks Limited | Issuer Rating | Disc.-W/drwn | Discontinued | -- | -- | Jan 15, 2009 | |
| Nortel Networks Limited | Notes & Long-Term Senior Debt | Disc.-W/drwn | Discontinued | -- | Discontinued | Jan 15, 2009 | |
| Nortel Networks Limited | Class A, Redeemable Preferred Shares | Disc.-W/drwn | Discontinued | -- | -- | Dec 12, 2008 | |
| Nortel Networks Limited | Class A, Non-Cumulative Redeemable Preferred Shares | Disc.-W/drwn | Discontinued | -- | -- | Dec 12, 2008 | |
| Nortel Networks Corporation | Convertible Notes | Disc.-W/drwn | Discontinued | -- | Discontinued | Jan 15, 2009 | |
| Nortel Networks Capital Corporation | Senior Unsecured Notes | Disc.-W/drwn | Discontinued | -- | Discontinued | Jan 15, 2009 |