Moody's ups Philippine Long Distance view to stable

Moody's Investors Service said it affirmed Philippine Long Distance Telephone Co.'s Ba2 senior unsecured foreign-currency rating and changed its outlook to stable from negative. Moody's also affirmed the company's Baa3 domestic-currency issuer rating, and the outlook for this rating remains positive.

The action was prompted by the change in outlook on the Philippines Ba3 country ceiling for foreign-currency bonds to stable from negative, Moody's said.

The company's current foreign-currency senior unsecured debt rating is above the Philippines' foreign-currency country ceiling. Moody's said it views foreign-currency bonds subject to international law as less likely to be subject to a debt moratorium than foreign-currency obligations subject to local law.

The agency added that the company's credit metrics already exhibit a strong investment-grade quality, so upward pressure on the local-currency rating would now be a function of a more stable economic, political and social environment and could reduce the uncertainties associated with the company's prospective operating environment.

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