Moody's: Philippine Long Distance on uncertain review

Moody's Investors Service said it has revised the status of Philippine Long Distance Telephone Co.'s Baa2 local currency issuer rating to review with direction uncertain from review for possible upgrade.

At the same time, Moody's said it has affirmed the company's Ba2/positive foreign currency bond rating.

The rating action has been prompted by the company's recent announcement that it plans to acquire up to a 20% stake in the Manila Electric Co. for about PHP20 billion, the agency said.

"While the acquisition can largely be funded out of cash on hand and without any material adverse impact on the company's consolidated financial metrics, which remain strong for a Baa rating, it will reduce the company's liquidity reserves," said Laura Acres, a Moody's vice president.

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