DIGICEL sustained an estimated US$35-US$40 million ($3.1-$3.6 billion) in property and network damage in Haiti up to last Friday, despite the network being restored and operational in 86 per cent of the functional sites.

International rating agency, Fitch Ratings revealed the estimate in a release it made stating that it does not anticipate changes to the ratings of Digicel Group’s debt due to the earthquake that shook and devasted Haiti on Janaury 12.

Digicel has a property and network insurance which will allow it to replenish costs incurred to repair the assets and network after paying the customary deductibles.

But Fitch noted that the lag between spending on rebuilding infrastructure and actually collecting the insurance proceeds will have an effect on Digicel’s short-term liquidity.

Digicel also has insurance for business interruptions that should cover operating expenses related to revenue declines for up to six months plus US$5 million of additional insurance for incremental costs.

Medium-term concerns relate to the economic situation of Haiti and the effect on demand for telecommunications services.

Digicel’s ratings are supported by its solid operating performance, its position as the leading provider of wireless services in the Caribbean (with good market positions in Jamaica, Haiti and Trinidad & Tobago), strong brand recognition, and an increasingly diversified revenue and cash flow stream across the Caribbean.

The ratings incorporate expectations for lower capital expenditure requirements over the next few years and management cost-control initiatives, including lower subscriber acquisition costs.