Warning that Digicel ‘will have to refinance again’ despite debt deal
The Denis O’Brien-founded firm has three years ‘breathing room’ but future prosperity will depend on the performance of the business
Digicel’s restructuring will afford the Denis O’Brien-founded company “breathing room” for up to three years but the company will then have to refinance its debts again, a leading ratings analyst has warned.
Johnny Da Silva, director of corporate ratings at Fitch, said the proposed debt restructuring deal offered Digicel a path to long-term viability but said its future prosperity depend on the performance of the business over the coming years.
“It is not problem-solved,” he told the Business Post. “It gives them this opportunity and then it would depend on the operating performance of the company and how they manage the entire business,” Da Silva added.
