Mitel got a boost when Standard & Poor’s rating agency raised Mitel’s credit rating to a B+ from a B. Good news for Mitel customers and people considering Mitel who have had competitors whispering awful things about Mitel’s health.
On a practical level, this upgrade will help Mitel borrow money at lower interest rates as well as potentially drive more institutional money into Mitel the investment vehicle (versus Mitel the company that makes telephone systems). This could increase the stock price and thus make Mitel employees happier than they already are, with the stock price almost tripling over the last year. It can also help attract talent, as the story right now is of a company on the march, picking up market share and getting their financial house in order.
S&P specifically noted that the Aastra merger is going well. We were hopeful of this as the two companies rarely competed head to head, at least in North America. Mergers are a scary event for companies, with many good companies brought low by a botched marriage in our experience. So far, so good, it appears.
As a reminder, you can always check out the numbers for yourself – Mitel’s stock ticker is MITL.