PLDT gets highest rating from CRISP

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) received the highest credit rating from Credit Rating and Investors Services Philippines Inc. (CRISP) amid its strong financial performance, excellent management, and dominance in the telecommunication industry.

CRISP assigned a ‘AAA’ issuer rating with a stable outlook to the country’s largest telecom operator as it continued to dominate over 60 percent in the wireless, fixed line and broadband segments of a highly competitive industry.

PLDT accounts for 67 percent of the wireless market segment as Smart Communications and Sun Cellular cornered 72 million or the estimated 109 million wireless subscribers.

It also accounted for 69 percent share or two million of the estimated three million fixed line subscribers and 64 percent or 3.3 million of the estimated 5.2 million broadband subscribers.

The rating agency also cited PLDT’s well-timed implementation of its capital investment program after completing its P67.1 billion network modernization program as a major factor in its dominant share in the industry

The investment that upgraded PLDT’s access network and made it more efficient and capable of more advanced generations of the Long Term Evolution (LTE) technology also expanded its digital fiber optic transmission network now spanning 75,000 kilometers.

CRISP noted PLDT’s strong financial performance with its average earnings before income tax, depreciation, and amortization (EBITDA) margin hitting 55 percent and income margins averaging 24 percent and with a return on equity of 32 percent.