"In turn, the risk of default has increased," according to Moody's. Moody's said that recent reports of the company seeking legal counseling regarding bankruptcy protection "corroborate this perspective and support ratings repositioning." In response to the ratings downgrade, Nortel announced that its operating subsidiary Nortel Networks Ltd. obtained a 30-day waiver from Export Development Canada to permit continued access to its EDC performance-related support facility. The waiver applies to EDC's right under the facility to suspend or terminate support resulting from the ratings downgrade. Nortel said it will work with the EDC during the next 30 days to potentially put in place a permanent waiver. Last week, the Wall Street Journal reported that the company had sought legal counsel regarding protection from its creditors in the event of a bankruptcy filing.