Fitch Upgrades Digicel Credit Rating To B+
Digicel Holdings Limited announced that Fitch Ratings has upgraded Digicel International Finance Limited’s Long-Term Issuer Default Rating to ‘B+’ from ‘B’, with a stable outlook.
A spokesperson said, “Digicel Holdings Limited today announced that Fitch Ratings has upgraded Digicel International Finance Limited’s Long-Term Issuer Default Rating to ‘B+’ from ‘B’, with a stable outlook.
“Fitch Ratings, one of the world’s leading independent credit rating agencies, also raised the ratings of Digicel International Finance Limited’s senior secured notes and term loan, co-issued by DIFL US LLC, to ‘B+’ from ‘B’.
“The upgrade recognises Digicel’s consistent financial improvement, continued progress in reducing debt and positive free cash flow generation. Fitch cited the company’s leading position in the Caribbean telecommunications sector, strong market presence and geographic diversification across 25 markets as key factors supporting the upgrade.
“Fitch noted Digicel’s voluntary US$100 million Term Loan B repayment in April 2026 as evidence of the company’s commitment to strengthening its balance sheet. The agency expects Digicel to continue generating positive free cash flow that can be used to further reduce net debt.
“The rating action recognises Digicel’s improved debt maturity profile and robust liquidity. The company has no significant debt maturities until 2032 and has access to a US$200 million secured revolving credit facility.
“Fitch expects Digicel’s debt levels to continue declining relative to its earnings, with gross leverage moving from 3.9 times in fiscal 2026 to 3.7 times in fiscal 2027 and net leverage improving from 3.4 times to 3.1 times. This expected improvement would give Digicel greater financial flexibility to meet its obligations and continue investing in its networks, products and services.
“Fitch highlighted Digicel’s consistent operating performance, with earnings before interest, taxes, depreciation and amortisation [EBITDA] margins before leases of approximately 40%. The company continues to expand its business solutions, home broadband and television services, which collectively account for approximately 25% of revenue.”
“This upgrade is further recognition of the consistent progress we are making to strengthen Digicel’s financial position,” said Leopoldo Gutierrez, Group Chief Financial Officer of Digicel. “Our voluntary US$100 million debt repayment, positive free cash flow and improved liquidity demonstrate the discipline behind our financial strategy. We remain focused on reducing leverage, driving operational performance and maintaining the financial flexibility needed to invest in our networks, products and services across the region.”
The spokesperson said, “The Fitch upgrade follows Moody’s Ratings’ June 2026 upgrade of Digicel Holdings [Bermuda] Limited’s Corporate Family Rating to B1 from B2, with a stable outlook, providing further external recognition of the Group’s financial progress.”
