S&P revises Digi outlook to negative

S&P said it revised its outlook for Digi Communications NV and its subsidiary RCS & RDS to negative from stable and affirmed their BB- issuer ratings.

Digi has not yet refinanced its €450 million bond maturing next February. “We believe that Digi is able and willing to repay its upcoming debt maturities but as we now estimate that its sources of cash will only just cover our estimated uses over the coming 12 months, we have revised downward our liquidity assessment to less than adequate from adequate,” S&P said in a press release.

The agency warned that if within the next six months, Digi does not act to refinance its upcoming maturities and improve its liquidity it could downgrade the company’s ratings.

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