Fitch: PLDT view to negative

Fitch Ratings said it revised PLDT Inc.'s outlook to negative from stable.

The agency also said it affirmed the company’s long-term local-currency issuer default rating at BBB+, long-term foreign-currency issuer default rating at BBB, foreign-currency senior unsecured rating at BBB and national rating at AAA(phl).

The outlook is stable.

The company’s sale of its remaining 25% stake in Beacon Electric Asset Holding (Beacon) may assist in de-leveraging, Fitch said.

Beacon is a special-purpose vehicle that holds shares of PLDT and Metro Pacific Investments Corp. in Manila Electric Co., the agency said.

Fitch said it forecasts operating EBITDA to weaken to in 2016 through 2017 because of the company’s structural shift to lower-margin data services and cost increases needed to expand its revenue share.

PLDT's aggressive promotional campaigns and handset subsidies to drive data usage levels in the long term are likely to weigh on EBITDA, the agency explained.

Fitch said its forecasts assume revenue growth in the low single-digits.

PLDT's ratings also reflect its leading position in the Philippines with 57% revenue market share in mobile- and broadband-services, the agency added, and a 70% subscriber market share in fixed-line services.

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