Latest Stories

PLDT gets positive rating from S&P


INTERNATIONAL credit ratings firm Standard & Poor’s (S&P) has put Philippine Long Distance Telephone Co. (PLDT), the country’s most valuable firm, on positive ratings watch, indicating the chance for an upgrade in the next 12 to 18 months.

This follows a similar move on the Philippines’ sovereign rating, which is on the verge of being declared “investment grade” for the first time in the country’s history.

S&P also affirmed PLDT’s foreign currency and senior unsecured rating of BBB- and the Asean regional scale rating of axA- which are considered investment grade.

PLDT is the only Filipino corporation rated at investment grade, one notch higher than the Philippines’ sovereign rating.

“This affirms that the company is in the right direction as it evolves into a multimedia services group that is fully prepared for the screen age,” said PLDT chair Manuel V. Pangilinan.

He said the group’s recent decision to sell 80 percent of its shares in leading Filipino business process outsourcing (BPO) firm SPi Global would further strengthen PLDT’s finances and improve its cash flow.

For his part, PLDT president and CEO Napoleon Nazareno said the completion of the two-year P67-billion network modernization program puts PLDT far ahead of competition in terms of service reliability, speed, and efficiency, improving its position as industry leader.

This enables PLDT to lower its capital expenditures to its normal level of about 17 to 18 percent of revenues.

PLDT has the distinction of being the first and still only Philippine corporate to be given investment grade credit ratings by all three major international credit watchers—S&P, Moody’s Investors Service, and Fitch Ratings.

“The rating reflects the company’s strong position in the domestic market, diversified services, integrated network, and solid cash flow measures,” S&P said in a statement.

In its statement after raising its outlook for the Philippines, S&P said it would “raise the country’s debt rating next year depending on improvements in government revenue structure, a continued diminished reliance on foreign currency government debt financing, or a lower government debt burden.”

“We may also raise the ratings if institutional and structural reforms lead to improved investment environment, and thus better growth potential,” the credit watcher added.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , investment grade , PLDT , ratings watch , Standard & Poor's

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Man found dead in Quezon City, alleged victim of summary execution–report
  • Aquino to lead Air Force turnover rites
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • China welcomes PH apology
  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Marketplace