Moody's upgrades Digi

Moody's Investors Service said it upgraded the corporate family rating to Ba3 from B1 and the probability of default rating to Ba3- PD from B1-PD of Digi Communications NV, the parent company for RCS & RDS SA. Concurrently, the agency boosted the rating of the €850 million of guaranteed fixed-rate senior secured notes, split into two tranches, €450 million due 2025 and €400 million 2028, issued by RCS & RDS to Ba3 from B1.

"The upgrade to Ba3 reflects Digi's track record of good operating performance and positive growth prospects, while maintaining relatively low leverage levels on a sustained basis," said Agustin Alberti, a Moody's vice president, senior analyst and lead analyst for Digi, in a press release.

"The upgrade also reflects the corporate governance considerations associated with Digi's decision to pursue a more conservative financial policy, as the company has used almost half of the proceeds of the sale of its Hungarian operations to repay debt with gross leverage levels decreasing by approximately 0.5x to around 3x," added Alberti.

The outlook is stable.

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