Fitch to give Digicel notes B/RR4

Fitch Ratings said it expects to rate Digicel Ltd.’s proposed $925 million senior notes due 2023 B/RR4(EXP).

Proceeds are expected to be used mainly to fully redeem its $800 million 8¼% senior notes due 2017 and to pay for a tender premium for the redemption, as well as the associated accrued interest.

Securities rated RR4 have characteristics consistent with securities historically recovering 31%-50% of the principal and related interest.

Fitch said Digicel's ratings reflect its solid performance and cash flow from operations generation, geographic diversification with a leading market position, strong brand recognition, as well as Fitch's expectation for stable credit metrics over the medium-term.

The ratings are tempered by the company’s aggressive shareholder distribution, high leverage and the exposure of its operations to low-rated countries.

© 2015 Prospect News.
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