Moody’s changes Digicel view

Moody's Investors Service said it changed to negative from stable the outlook on the ratings of Digicel Group Ltd. and Digicel Ltd. and assigned a negative outlook to Digicel International Finance Ltd.

At the same time, the agency affirmed Digicel Group's B2 corporate family rating and B2-PD probability of default rating, as well as the B1 rating on the unsecured notes of Digicel and the Ba2 rating on the secured bank credit facilities of Digicel International Finance.

The change in outlook reflects the company's ongoing high leverage and the reduced runway available to the company to simultaneously improve its fundamental credit profile and address its large looming debt maturities with anticipation, Moody’s explained.

The agency said that while it expects that the recent tariff rebalancing implemented in some markets and the investments in upgrading its network in past years will contribute to the company returning to modest revenue and EBITDA growth during FY19, the decline in leverage will only be gradual.

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