“Despite increasing capex (capital expenditure) and ongoing competitive pressures, PLDT’s margins and credit metrics continue to solidly position the company in the Baa2 rating category,” Moody’s Vice President and Senior Analyst Gloria Tsuen said in a statement on Tuesday.

“The affirmation of the ratings reflects PLDT’s dominant market position in the Philippines’ duopolistic telecommunications market, strong margins compared to global telecommunication peers in the Baa rating category, solid credit profile, and excellent liquidity,” added Ms. Tsuen, who is also the debt rater’s lead analyst for the telco giant.

Moody’s expects PLDT to continue its dominance in major segments -- cellular telephony, fixed-line voice services, and broadband -- even as EBITDA (earnings before interest, taxes, depreciation and amortization) margin is seen to “erode slightly” over the next 12-18 months on intense domestic competition and decreasing high-margin toll revenues. 

The telco giant should also continue investing in its network and service, especially for digital businesses, the debt rater said. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. -- Daphne J. Magturo