Fitch affirms Globe Telecom

Fitch Ratings said it affirmed Globe Telecom's issuer and instrument ratings following the company's declaration of a special dividend at PHP50 per common share, equivalent to PHP6.6 billion and payable Dec. 17. The affirmed ratings include Globe's long-term local-currency issuer default rating at BBB-, long-term foreign-currency issuer default rating at BB+, national long-term rating at AAA(phl) and senior unsecured debt instruments at BB+.

The outlook remains stable.

Globe Telecom has an entrenched second-ranking position in the Philippines telecommunications space, with integrated and diversified operations spanning cellular, fixed-line and broadband services, Fitch said. The company's local currency rating ignores foreign-currency transfer and convertibility risk, the agency said, and is more reflective of its stand-alone credit profile.

Globe remains constrained by the country ceiling of the Republic of the Philippines, which is currently at BB+, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.