Ottawa-based telephony hardware and software producer Mitel Networks Corp. experienced weak operating results in the first half of 2015 due to continued declines in premise-based telephony offerings, significant foreign exchange headwinds, and slower-than-expected product deployments at customers of the company's mobile division. We expect these factors to result in minimal headroom on the company's debt-to-EBITDA covenant at upcoming measurement periods. We understand that management is working on measures to provide near-term covenant relief. As a result, we are placing our 'B+' long-term corporate credit rating on Mitel on CreditWatch with negative implications, reflecting the possibility of a downgrade if the company's covenant headroom does not improve in the near term. We are also revising our liquidity assessment on Mitel to
