Moody's confirms Philippine Long Distance Telephone

Moody's Investors Service said it confirmed Philippine Long Distance Telephone Co.'s Baa2 local-currency issuer rating, along with its Ba2 foreign-currency bond rating with positive outlook.

This concludes the review for direction uncertain that began in March.

The outlook is stable.

The confirmation reflects the company's increased appetite for risk as a result of the recently announced Meralco acquisition which, given funding plans, will result in an increase in leverage and weakened cash flow metrics, Moody's said.

Such concern is counter-balanced by the company's solid financial profile post-acquisition, which can be contained within the Baa2 rating, the agency said.

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