Fitch upgrades Digicel

Fitch Ratings said it upgraded the issuer default ratings of Digicel Group Ltd. to CCC- from RD (restricted default), along with Digicel Ltd. to B- from CCC and Digicel International Finance Ltd. to B from CCC+.

The agency also said it assigned a new B- issuer default rating to Digicel Group One Ltd. and CCC- issuer default rating to Digicel Group Two Ltd.

The company recently completed a debt exchange, reflecting the controlling shareholder's willingness to restructure debt rather than seeking additional equity or expediting asset sales, Moody's said.

The terms of the exchange are viewed as a negative from a governance standpoint, the agency explained.

These moves have undermined the group's position with creditors and will result in higher refinancing costs at all levels, Moody's said.

While the restructuring has afforded the group extra time to monetize assets, the amortization profile still features significant maturities starting in 2021, the agency said.

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