Moody's may upgrade Globe Telecom

Moody's Investors Service said it placed Globe Telecom Inc.'s Baa3 local currency corporate family rating on review for possible upgrade and affirmed the company's Ba2 foreign currency senior unsecured ratings with a negative outlook.

The agency said that Globe has developed a stable operating platform, is generating sound credit metrics and is one of two entities that enjoy an "enviable" position in the healthy Filipino cellular market, with limited additional competition and high barriers to entry. The review will focus on Globe's ongoing growth prospects and its future capex and financial policies.

Moody's said the affirmation of Globe's foreign currency ratings reflects the correlation with the Philippine sovereign country ceiling, as Globe's foreign currency ratings are unlikely to rise absent either an improvement in the sovereign rating or a significant improvement in Globe's local currency rating.

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