Jul 2023 Financial News

Fitch Downgrades Digicel International Finance Limited to 'RD'

Jul 19, 2023

• Fitch Ratings has downgraded the Long-Term (LT) Issuer Default Rating (IDR) of Digicel International Finance Limited (DIFL) to 'RD' from 'C'.
• Fitch has also affirmed the IDRsof Digicel Group Holdings Limited (DGHL) and Digicel Limited (DL) at 'RD'.
• The downgrade of DIFL's LT IDR reflects the expiration of the original grace period on its senior and subordinated notes after uncured coupon payments due on July 15, 2023.

KEY RATING DRIVERS

Expiration of Original Grace Period: The downgrade of DIFL reflects the expiration of the original grace periods to pay interest on DIFL's senior 2025 notes and subordinated 2026 notes on July 15,2023. Fitch's revisions of its definition for restricted default (RD) removed ambiguity regarding multiple extensions of applicable grace periods. It also clarified that the relevant event in determining an 'RD' rating is the uncured expiry of any applicable original grace period.

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Source:

Fitch Ratings - New York - 19 Jul 2023