The revenue of Digicel Holdings slipped, but other metrics improved, contributing to a rating upgrade from Moody’s by one notch to B1 from B2.
“The rating action incorporates Digicel’s ability to absorb external shocks driven by the company’s geographic diversification and leading market positions in the markets in which it operates,” Moody’s said in its ratings announcement on June 17.
The company generated revenue of “US$1.8 billion” for the 12 months ended March 2026, a decline of roughly 5.0 per cent, compared to the US$1.9 billion reported in 2025 and 2024, according to previous Moody’s updates. Digicel operates across 25 Caribbean markets.
Digicel’s liquidity position was described as good, backed by US$340 million in cash as of March 2026 and a US$200-million revolving credit facility fully available until 2030. Those resources comfortably cover annual term loan amortisation payments of roughly US$8 million through to 2032, Moody’s said.
Moody’s acknowledged Digicel’s debt management during the year, as the company retired US$100 million in debt ahead of schedule while also repricing its term loan — a move the agency said reflected an evolving track record of adequate liquidity management.
“We expect Digicel to use excess cash to reduce debt and that these initiatives will continue yielding improvements in cash flow generation and credit metrics,” Moody’s stated.
Net leverage stood at 3.2 times annual earnings, with the expectation of converging towards 2.9 times in the medium term. The ratings agency said it expects the company to maintain an EBITDA margin above 40 per cent.
Moody’s assigned a stable outlook to both Digicel Holdings and its financing subsidiary, Digicel International Finance Limited, whose senior secured term loan, revolving credit facility, and notes were all upgraded to B1.
“This upgrade reflects the significant progress we have made in strengthening Digicel’s financial position and executing our long-term strategy,” said Leopoldo Gutierrez, group chief financial officer of Digicel. “Combined with our recent loan repricing and continued debt-reduction initiatives, it demonstrates the momentum we have built and the confidence in our business and operating performance. We remain focused on maintaining financial discipline, while continuing to invest in the networks, products, and services that support our customers and communities.”
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