S&P Global affirms PLDT 'BBB' rating, cites controlled capex

S&P GLOBAL RATINGS has affirmed PLDT Inc.'s “BBB” credit rating with a stable outlook, citing the company’s sustained and moderating capital intensity, which is expected to keep its operating and financial performance aligned with investment-grade standards.

- Ashley Erika O. Jose

“We affirmed our long-term issuer credit rating on PLDT at ‘BBB’ and our issue rating on the company’s senior unsecured notes at ‘BBB,” S&P Global said in a report dated Dec. 2. A “BBB” rating indicates that PLDT has adequate capacity to meet its financial commitments but remains more subject to adverse economic conditions.

According to S&P Global, improvements in PLDT’s internal controls, particularly over capital expenditure (capex), have allowed the company to maintain spending in line with its budgets and under control. It added that the company’s capex is expected to continue declining over the next 24 months.