Digicel has had its creditworthiness rating downgraded deeper into “junk status” by Fitch, one of the world’s main debt ratings firms, amid mounting concerns over the $6.7 billion (€5.8 billion) of borrowings at the phone company owned by businessman Denis O’Brien. Fitch lowered its rating on Digicel by one level to ‘B-’, which counts some six notches below what it considers to be “investment grade” and 15 rungs below its top AAA rating. Digicel’s debt level stood at seven times adjusted net earnings before interest, tax, depreciation, amortisation and rent costs (ebitdar) at the end of March, up from a ratio of 6.3 a year earlier, Fitch said. Fitch added it has a “negative” outlook on Digicel’s debt rating, amid concerns over the group’s ability to lower its debt mountain through asset sales. The Irish Times reported in June that the company plans to sell up to $500 million of assets by the end of next March and increase earnings by 10 per cent to about $1.1 billion to cut its debt burden.

Source: The Irish Times August 25, 2018 11:26 UTC