Moody's affirms Philippines Long Distance

Moody's Investors Service said it affirmed Philippines Long Distance Telephone Co.'s local currency issuer and foreign currency bond ratings at Baa2 and Ba2 respectively.

The outlook is stable.

The agency said that this affirmation follows Philippines Long Distance's announced proposals to amend certain of its bond indentures such that restrictions on the payment of dividends have been lifted.

"Whilst this theoretically puts no restrictions, over and above the Philippines regulatory requirements, on Philippines Long Distance's ability to pay dividends, Moody's would expect that the company continue to maintain a credit profile commensurate with its rating level," said Laura Acres, a Moody's vice president.

The agency added that Philippines Long Distance has consistently operated at an adjusted debt/EBITDA ratio of less than 1.5x since 2005 and Moody's expects such trend to continue.

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