S&P lifts Psalm, Napocor, Philippine Long Distance

Standard & Poor's said it upgraded three Philippine entities after raising the sovereign credit rating and Asean regional scale ratings on the Republic of the Philippines.

Power Sector Assets & Liabilities Management Corp.'s (Psalm) and National Power Corp.'s (Napocor) corporate credit ratings were upgraded to BBB- with a stable outlook from BB+ with a positive outlook, Asean regional scale ratings to axA- from axBBB+ and senior unsecured ratings to BBB- from BB+.

Philippine Long Distance Telephone Co.'s foreign-currency corporate credit rating was upgraded to BBB with a stable outlook from BBB- with a positive out, Asean regional scale rating to axA from axA- and senior unsecured rating to BBB from BBB-.

The agency said it considers the stand-alone credit profiles of Psalm and Napocor to be weak and heavily dependent on the support of the Philippine government.

The upgrades reflect an opinion that both utilities are almost certain to receive timely and sufficient extraordinary government support in the event of financial distress, S&P said.

The foreign-currency rating on Philippine Long Distance remains constrained by the BBB transfer and convertibility assessment on the Philippines, the agency said.

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