Moody's lifts Digicel

Moody's Investors Service said it upgraded the corporate family rating of Digicel Group Ltd. to B2 from B3, reflecting the faster than expected deleveraging by the company, driven largely by the success of the new market launches and reduced start up expenses in the company's Haiti and Trinidad & Tobago markets.

In addition, the rating agency changed the outlook on Digicel's debt ratings to positive from stable, as Moody's said it expects further cash flow growth from the existing subscriber base and diminishing capital requirements as the new markets mature.

In conjunction with the ratings action, Moody's said it upgraded the ratings on Digicel's $1.4 billion senior unsecured notes due 2015 to Caa1 from Caa2 and the rating on the $450 million senior unsecured notes due 2012 at Digicel Ltd. to B2 from B3.

The company also has a $1.2 billion senior secured credit facility at its subsidiary, which Moody's said it does not rate.

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