Fitch downgrades Digicel Group

Fitch Ratings said it downgraded the long-term issuer default rating of Digicel Group Holdings Ltd. (DGHL) to C from CC as well as the IDR of Digicel Ltd. (DL) to C from CC. Fitch also lowered, in a related rating action, the IDR of Digicel International Finance Ltd. (DIFL) to C from CC.

“These downgrades reflect DL's entrance into a grace period for financial payments related to its notes due on March 1, 2023, as well the announcement by the company that it has reached an agreement in principle for a comprehensive restructuring of multiple debt obligations,” the agency said in a press release.

Fitch said it will downgrade the ratings to RD, restricted default, if in its opinion DGHL or any of its units has an uncured default on any material debt or if they enter and complete an exchange offer.

Following completion, Fitch said it would re-rate the group’s IDRs to a level consistent with their post-exchange capital structure and risk profile.

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