Ratings agency Fitch says the Digicel Group faces imminent refinancing risk and will have to restructure a large part of its almost US$7 billion debt pile in the next 18 months.
Fitch lowered its ratings on Digicel by one level to double C on Wednesday night, which based on its definition implies a default of some kind appears probable.
The rating is eight rungs below what Fitch deems to be an investible grade.
According to Fitch, the most immediate concern is Digicel's US$1.3 billion notes maturing in April 2021, which the ratings agency believes the company will struggle to refinance amid stagnant operating performance.
Fitch expects that Digicel will have to restructure debt at multiple levels in the next 12 to 18 months, due to what it says is the unsustainable capital structure.
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