Fitch ups Digicel notes, loan

Fitch Ratings said it upgraded Digicel Group Ltd.'s $1 billion of 8 7/8% senior subordinated notes due 2015, $415 million of 9 1/8/9 7/8% senior subordinated toggle notes due 2015 and $775 million of 10½% senior subordinated notes due 2018 to B-/RR5 from CCC+/RR5, Digicel Ltd.'s long-term issuer default rating to B from B- and $800 million of 8¼% senior notes due 2017 and $510 million of 12% senior notes due 2014 to B/RR4 from B-/RR4 and Digicel International Finance Ltd.'s senior secured credit facility to B+/RR3 from B/RR3.

Fitch assigned long-term issuer default ratings of B to both Digicel Group and Digicel International.

The outlook is stable.

The rating actions reflect Digicel's continued strong operating performance, increasingly diversified revenue and cash flow generation, improved free cash flow generation and expectation of stable credit metrics, the agency said.

Digicel's ratings are supported by its position as the leading provider of wireless services in most of its markets and strong brand recognition, the agency added. The ratings are tempered by continued high leverage and exposure to politically unstable countries and economies.

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