Report questions Digicel viability

Digicel, the mobile carrier company controlled by Denis O’Brien, is facing an uncertain future due to high debt, currency fluctuations, and change in consumer behaviour, says a report by independent research provider CreditSights.

In a presentation delivered on Wednesday in London — entitled ‘Digicel: should I stay or should I go’ — CreditSights analyst Michael Chakardijan said the company’s high debt levels — more than $6bn (€5.74bn) left little room for manoeuvre.

“W e view that there is limited-to-no equity cushion. This gives the company little wriggle room for poor performance and there is not an immaterial threat of distress in the event of poor results in key markets,” he said.