Moody’s reviews Digicel for upgrade

Moody’s Investors Service said it placed Digicel International Finance Ltd. (DIFL, Digicel)'s Caa1 senior secured ratings under review for upgrade. Previously, the outlook was negative. Moody's also assigned a Caa1 corporate family rating, under review for upgrade, to Digicel.

At the same time, Moody's withdrew Digicel Group Holdings Ltd.'s (DGHL) Caa2-PD probability of default, Caa2 CFR and Ca senior unsecured ratings; Digicel Ltd. (DL) Caa3 senior unsecured ratings, DIFL's Caa3 senior unsecured and subordinated ratings and Digicel Group Two Ltd.'s C senior unsecured ratings as these entities have completed Chapter 15 processes.

On Jan. 29, Digicel reported that it finished its approved Bermuda scheme of arrangement. The agency said it considers the arrangement distressed because bondholders and lenders suffered economic losses and the avoidance of a potential default.

“Moody's review will focus on Digicel's i) new shareholders' medium-term strategy including financial policies, operating strategy, board composition and liquidity management; and (ii) the company's competitive position in the markets in which it operates and the challenges that constrain operating and cash flow improvements, which include difficult economic and operating conditions in some of the company's large markets, namely Haiti which represents around 17% of the company's EBITDA,” the agency said in a press release.

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