Fitch, the ratings agency, and bond investors are increasingly concerned about Digicel's ability to refinance $925 million of debt that falls due in less than six months.Denis O’Brien’s Digicel has said that it is “confident it is well positioned” to deal with a $925 million of bonds that fall due in less than six months, even as unfavourable foreign-exchange movements drag on earnings and Fitch issued a fresh warning of a potential debt default.
Currency woes also saw an underlying 9 per cent increase in service revenues for the quarter, to $585 million, translate into a 4 per cent increase in reported revenues. The figures were provided by sources, as Digicel does not currently publicly comment on its financial results. Fitch warned that even though Digicel used $1.1 billion of the net $1.3 billion of initial proceeds from the sale of its Pacific operations to redeem bonds due in 2024, there are “elevated” risks that it will not be able to refinance the 2023 bonds without a debt restructuring.