Digicel $3bn debt exchange deemed distressed

Denis O'Brien, Digicel, LatAm, Caribbean, Jamaica, telecoms
By Oliver West
05 Sep 2018

Jamaica telecoms group Digicel saw its bonds slump after markets reopened on Tuesday as agencies slashed its credit ratings on the back of a bond exchange aimed at giving the issuer more time to deleverage.

Moody’s cut the borrower’s issuer rating from B2 to Caa1 and Fitch lowered it from B- to C after Digicel proposed adding two years to the maturity of its 8.25% 2020s and 7.125% 2022s. 

Both agencies qualified the transaction as a “distressed” debt exchange, and affected bonds were slashed ...

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