Advertisement

Fitch keeps negative outlook on PH telecom 

Fitch Ratings on Monday kept its negative outlook on the Philippine telecom industry as it expects the industry’s debt to rise on higher capital expenditures this year. 

“Fitch has a negative outlook on the Philippines telecoms sector, reflecting our expectations that average FFO [funds from operations] adjusted net leverage will rise towards 3.0x in 2020,” the credit rating firm said. 

Fitch said PLDT Inc. and Globe Telecom Inc’s capex push ahead of the launch of third mobile network operator, Dito Telecommunity “will delay deleveraging,”  despite a stronger fourth quarter on accelerating data monetization and more stable competition.

Globe is budgeting P63 billion this year while PLDT is more aggressive on capex, at P83 billion. 

PLDT’s capex ramp-up is driven mainly by P18.5 billion of sales-driven capex for broadband installations, though we believe the amount could vary depending on the pace of actual connects and upgrades for fibre-broadband services. 

The company is also accelerating subscriber migration to its 4G network, after investing heav

Topics: Fitch Ratings , Telecom , PLDT , Globe Telecom , Dito Telecommunity
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementSpeaker GMA
Advertisement