S&P, Moody's, Fitch rate PLDT investment grade

MANILA, Philippines - Dominant carrier PLDT is the only Philippine company that has been given investment credit ratings by three of the leading credit rating agencies – New York-based Moody’s Investors Service and Standard & Poor’s as well as London-based Fitch Ratings.

PLDT chairman Manuel V. Pangilinan said in a statement that the recent credit rating upgrade given by S&P to investment grade from one notch below investment grade affirms the soundness of the company’s business strategy.

“This also affirms the soundness of our business strategy to transform PLDT into a multi-media services group which has placed the company in the best possible position to enhance its leadership position far into the future,” Pangilinan stressed.

Last July 5, S&P raised the long-term foreign currency credit rating of PLDT to BBB- or one notch below investment grade with a stable outlook from BB+ or one notch below investment grade with a positive outlook.

Likewise, S&P also raised the ASEAN scale long-term rating on PLDT to ‘axA-’ from ‘axBBB+’ and its senior unsecured debt to BBB- or investment grade from BB+ or one notch below investment grade.

Last May, Moody’s improved its outlook on PLDT’s ratings to positive from ‘stable’ with the foreign currency bond and local currency issuer ratings at Baa3 or investment grade.

On the other hand, Fitch affirmed PLDT’s long-term foreign and local currency issuer default ratings at ‘BBB-‘ and ‘A-‘, respectively last November. 

“We are pleased with the recent credit rating action by S&P. The overall financial strength and competitive advantage of PLDT are reflected in the distinction of being the only Philippine company whose debt ratings are similarly regarded as investment grade by all three international rating agencies,” the PLDT chief said. 

The credit rating of PLDT was better than that of the Philippines whose rating was upgraded by S&P to BB+ or one notch below investment grade from BB or two notches below investment grade.

S&P said the foreign currency rating on PLDT continues to be constrained by our transfer and convertibility assessment on the Philippines of ‘BBB-’.

Paul Draffin, S&P credit analyst, earlier said the rating of the telecom provider reflect the country’s sound macroeconomic fundamentals and strong competition in the industry.

“The rating on PLDT also reflects the country and macroeconomic risk of the Philippines and intense competition in the matured domestic cellular market,” Draffin said.

He also cited the company’s strong performance in the industry.