Moody’s cuts Digicel International

Moody’s Investors Service said it downgraded Digicel International Finance Ltd.’s senior unsecured and subordinated ratings to Caa3 from Caa2. The agency also confirmed the ratings of Digicel Group Holdings Ltd., Digicel Group Two Ltd. and Digicel Ltd. and changed the outlook for the issuers to negative from under review.

These actions conclude the review for upgrade started on Oct. 27, Moody’s said.

“The confirmation reflects that despite the debt reduction with proceeds from the sale of Digicel Pacific Ltd. (DPL), the refinancing risk associated to Digicel Ltd.'s $925 million senior unsecured notes due in March 2023 persists, increasing default risk.

“The downgrade of the senior unsecured and subordinated ratings of Digicel International Finance Ltd. to Caa3 from Caa2 reflects the company's business profile and capital structure after the sale of DPL including the associated debt repayment, and the increasing risk of a restructuring and a higher expected loss for these instruments,” Moody’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.