International credit ratings agency, Fitch, has revised its ratings for the entire Digicel corporate family.
The revision follows the conclusion of the group’s distressed debt exchange earlier this week.
Digicel Group 0.5 is now rated at triple-C for its Long-Term Foreign Currency Issuer Default Rating.
Digicel Limited has been upgraded from Restricted Default to triple- C.
And Digicel International Finance remains at triple-C-plus.
Speaking with Nationwide News today, Primary Ratings Analyst at Fitch, Sul Ahmad, indicated that Digicel still has financial troubles, but the debt restructuring has bought them some time.
The restructuring reduces Digicel’s debt from US$7 billion to 5.4 billion US dollars.
They also save US$125-million a year in interest payments.
Ahmad says Digicel’s debt was a major risk.
However, Ahmad also cautions that Digicel has other debt due in 2023, that it may be difficult for them to refinance unless things turn around.
And, he says Fitch expects the telecoms giant’s revenues to fall in the next couple years.
Sul Ahmad, Primary Ratings Analyst at Fitch, speaking with Nationwide News today.