Fitch rates Digicel notes B-

Fitch Ratings said it assigned a B- with a recovery rating of RR4 rating to Digicel Ltd.'s $500 million 2017 senior notes. The company intends to do a reopening of these notes for $300 million.

The proceeds are expected to be used for general corporate uses.

Digicel Group Ltd. has $1 billion 8.875% senior subordinated notes due 2015 rated CCC+ with a recovery rating of RR5, $415 million 9.125/9.875% senior subordinated toggle notes due 2015 rated CCC+ with a recovery rating of RR5 and $775 million 10½% senior subordinated notes due 2018 rated CCC+ with a recovery rating of RR5.

Digicel Ltd. has a foreign-currency issuer default rating at B-, $500 million 8¼% senior notes due 2017 rated B- with a recovery rating of RR4, considering the $300 million reopening, and $510 million 12% senior notes due 2014 rated B- with a recovery rating of RR4.

Digicel International Finance Ltd. has a senior secured credit facility rated B with a recovery rating of RR3.

The outlook is stable.

The ratings are supported by its solid operating performance, position as the leading provider of wireless services in most of its markets, strong brand recognition, increasingly diversified revenue and cash flow and positive free cash flow generation, Fitch said.

The ratings are tempered by continued high leverage and exposure to politically unstable countries and economies, the agency said.

© 2015 Prospect News.
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