Fitch cuts Digicel Ltd.

Fitch Ratings said it downgraded Digicel Ltd.’s issuer rating to CCC+ from B- but affirmed the issuer and senior secured ratings for Digicel Group Holdings Ltd. (DGHL) at CCC and removed the rating watch positive on all ratings. The CC subordinated and unsecured ratings were also affirmed.

The agency concurrently affirmed the ratings for Digicel International Finance Ltd. (DIFL) at B-.

“The removal of the RWP and downgrade of Digicel Ltd. reflect increased refinancing risk of its $925 million unsecured notes due in March 2023 due to deteriorating macroeconomic conditions globally, rising interest rates and increased investor risk aversion. DIFL's ratings reflect its strong position in the capital structure as the direct owner of the Caribbean operating subsidiaries. DIFL's consolidated leverage is in the 4x range compared with DGHL at around 6x and DL at 5x,” Fitch said in a press release.

The outlook is stable.

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