S&P rates Globe Telecom

Standard & Poor's said it assigned its BB debt rating to the proposed $100 million senior unsecured notes due 2012 to be issued by Globe Telecom Inc. (foreign currency BB/stable/--, local currency BB+/stable/--). These notes will be consolidated and form a single series with Globe's $200 million 9.75% notes due 2012 issued on April 4, 2002.

Proceeds from the additional debt will be used primarily to fund its capital expenditure.

"Globe's capital structure is likely to remain moderate, and the additional debt is within Standard & Poor's expectations, whereby total debt to capital could rise to 53%-58% (from about 51% at Dec. 31, 2003) in the near to medium term," said S&P credit analyst Yasmin Wirjawan.

S&P said the ratings reflect Globe's improving financial profile and its favorable position as the second-largest wireless operator in the Philippines. At March 31, Globe's subscriber base was above 9 million, or a 40% market share.

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