“Blow to Digicel”

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Digicel is struggling to climb out of a deep financial hole, with debt on its books now estimated to be seven times more than earnings.

The telecommunications group, which operates in Barbados and 30 other markets, has been trying to reduce a US$6.7 billion debt burden, and late last year reached agreement with investors to delay the payment of bonds worth US$3 billion.

While having access to US$279 million in cash and its US$100 million revolving credit facility (RCF) available at the end of March, Digicel’s financial performance declined further.

The company has now suffered a major credit rating downgrade from Moody’s Investors Service. (SC)

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