Moody's lifts Digicel credit rating to B1 after debt reduction progress

Digicel Holdings Limited has confirmed that Moody's Ratings has raised the group's Corporate Family Rating (CFR) to B1 from B2. The agency applied the same one-notch upgrade to senior secured debt facilities held by Digicel International Finance Limited.

Moody's also adjusted Digicel's outlook to stable, down from positive, as part of the overall rating action.

The uplift reflects what Moody's described as ongoing financial strengthening at Digicel, including tighter liquidity management, improving credit measures, and a sustained push to reduce leverage. The agency also pointed to the company's geographic spread and leading positions across Caribbean and Latin American markets as supporting factors.

The move represents another step in Digicel's long-running financial turnaround. Over several years, the company has pursued a strategy aimed at fortifying its balance sheet, lifting operational efficiency, and widening its financial flexibility.

Most recently, Digicel completed a repricing of its Term Loan B facility, a step expected to lower borrowing costs after a voluntary US$100 million debt repayment.

Moody's highlighted Digicel's positive free cash flow, an improving leverage profile, and a strong liquidity position backed by cash on hand, projected cash generation, and access to committed credit facilities. The agency said it expects Digicel to keep managing liquidity and credit metrics conservatively, in line with the B1 rating band.

"This upgrade reflects the significant progress we have made in strengthening Digicel's financial position and executing our long-term strategy," Leopoldo Gutierrez, Group Chief Financial Officer of Digicel, said. "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."