Fitch cuts Digicel Group

Fitch Ratings said it downgraded the issuer default ratings of Digicel Group Ltd., Digicel Group Two Ltd. and Digicel Group One Ltd. to C from CC, CC, and CCC, respectively, following the suspension of interest payments on the Digital two and Digital one instruments.

Fitch also downgraded the Digital one instruments to C/RR4 from CCC/RR4 and affirmed the ratings on the Digicel two and Digicel Group Ltd. instruments at C/RR5.

“The group has disclosed ongoing discussions with creditors regarding a debt exchange and a reduction in principal. Fitch indicated in November 2019 that the company would likely have to restructure debt at multiple levels, due to Digicel's unsustainable financial structure and imminent refinancing risk,” said Fitch in a press release.

Digicel entered a 30-day grace period on Monday.

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