Moody's affirms Globe Telecom

Moody's Investors Service said it affirmed Globe Telecom Inc.'s senior implied and senior unsecured debt ratings of Ba2 with a negative outlook.

The foreign currency rating and outlook reflect the Philippines' sovereign foreign currency rating and outlook. Moody's also assigned the company Ba1 local currency senior implied and senior unsecured issuer ratings with a stable outlook.

The affirmation follows Globe's announcement of its intentions to solicit consents for some covenant changes to its existing 2012 bond. Moody's understands that the proposed changes in covenants include change in the calculation methodology in relation to restricted payment basket and the elimination of U.S. Securities and Exchange Commission reporting requirement from the indenture.

Moody's said it further understands that the proposed change in the calculation methodology in relation to restricted payment basket will allow the basket to grow at a rate that provides flexibility to the company to optimize its capital structure. As for the elimination of U.S. SEC reporting requirement from the indenture, Moody's understands from the company that it is no longer required to report to the SEC.

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