PLDT’s local, forex bonds get investment grade rating

MANILA, Philippines - New York-based Moody’s Investors Service upgraded the local currency issuer rating and foreign currency bond rating of dominant carrier Philippine Long Distance Telephone Co. (PLDT) to one notch above the minimum investment grade on the back of a stable outlook.

PLDT chairman Manuel V. Pangilinan said in a statement that the upgrade from Moody’s reaffirms the soundness of company’s business strategy to transform into a fully integrated telco operator offering a complete suite of advanced communications services.

The dominant carrier continues to evolve into a full pledged multimedia service provider by pursuing multiple platforms with the successful investment through MediaQuest Holdings Inc. in TV5 and Cignal TV as well as The Philippine Star, The Philippine Daily Inquirer, and BusinessWorld.

PLDT has earlier earned the distinction of being the first Philippine corporate to be given investment grade credit ratings by Moody’s, Standard & Poor’s Ratings Services, and Fitch Ratings.

Last July, PLDT also received a one-notch upgrade from S&P, raising its long-term foreign currency credit rating to BBB- or investment grade with a stable outlook from BB+ or one notch below investment grade with a positive outlook.

On Monday, Moody’s upgraded the local currency issuer rating and foreign currency bond rating of PLDT by one notch to Baa2 or a notch above the minimum investment grade from Baa3 or minimum investment grade. The ratings outlook is stable.

Moody’s assistant vice president and analyst Yoshio Takahashi said in a statement released late Monday that the credit rating of PLDT is constrained by a two-notch differential with the sovereign credit rating of the Philippines that was also upgraded to Ba2 or a notch below investment grade from Ba3 or two notches below investment grade.