TORONTO—Moody’s Investor Services has lowered Nortel Networks Corp.’s credit rating to junk status.
The rating on its senior long-term debt dropped to Ba3 from Baa3, while the rating on its preferred fell to B3 from Ba2. The rating for commercial paper slid to Not Prime from Prime-3.
“The downgrades reflect the continued decline in spending by telecom carriers which is expected to be deeper and more protracted than previously anticipated,” said the ratings agency in a statement.
