SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6 -K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Of the Securities Exchange Act of 1934
For the month of March 2006
Commission File Number 1-03006
Philippine Long Distance Telephone Company
(Exact Name of Registrant as specified in its Charter)
Ramon Cojuangco Building
Makati Avenue
Makati City
Philippines
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
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Form 20-F: y |
Form 40-F: o |
(Indicate by check mark whether by furnishing the information contained in this form, the registrant is also thereby furnishing the information to the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act 1934.)
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Yes: o |
No: y |
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____)
Enclosure:
A copy of the disclosure letter we sent today to the Philippine Stock Exchange and the Securities and Exchange Commission regarding the press release issued by Moody’s Investors Service (Moody’s) entitled “Moody’s Review PLDT’s Ba1 Local Currency Rating for Possible Upgrade; Affirms Ba2 Foreign Currency Ratings with a Negative Outlook”.
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March 29, 2006 |
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The Philippine Stock Exchange
Disclosure Department
4th Floor PSE Centre
Exchange Road, Ortigas Center
Pasig City
Attention: Ms. Jurisita M. Quintos
Senior Vice President
Ladies and Gentlemen:
In compliance with Section 17.1(b) and Section 17.3 of the Securities Regulation Code, we submit herewith a copy of SEC Form 17-C with a press release issued by Moody’s Investors Service (Moody’s) attached thereto entitled “Moody’s Review PLDT’s Ba1 Local Currency Rating for Possible Upgrade; Affirms Ba2 Foreign Currency Ratings with a Negative Outlook”.
This shall also serve as the disclosure letter for the purpose of complying with PSE Corporate Disclosure Requirements.
Respectfully yours,
MA. LOURDES C. RAUSA-CHAN
Corporate Secretary
MLCRC:amq
Encs.
March 29, 2006
SECURITIES & EXCHANGE COMMISSION
Money Market Operations Department
SEC Building, EDSA
Mandaluyong City
Attention : Director Justina F. Callangan
Corporations Finance Department
Gentlemen:
Re : Philippine Long Distance Telephone Company
SEC Registration No. PW-55
In accordance with Section 17.1 (b) of the Securities Regulation Code, we submit herewith five (5) copies of SEC Form 17-C with a press release issued by Moody’s Investors Service (Moody’s) attached thereto entitled “Moody’s Review PLDT’s Ba1 Local Currency Rating for Possible Upgrade; Affirms Ba2 Foreign Currency Ratings with a Negative Outlook”.
Very truly yours,
MA. LOURDES C. RAUSA-CHAN
Corporate Secretary
MLCRC:amq
Encs.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.1
1. March 29, 2006
(Date of earliest event reported)
2. SEC Identification Number PW-55
3. BIR Tax Identification No. 000-488-793
4. PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
Exact name of registrant as specified in its charter
5. PHILIPPINES 6. _____________ (SEC Use Only)
Province, country or other jurisdiction Industry Classification Code
of Incorporation
7. Ramon Cojuangco Building, Makati Avenue, Makati City 1200
Address of principal office Postal Code
8. (632) 816-8553; 816-8556
Registrant's telephone number, including area code
9. Not Applicable
Former name or former address, if changed since last report
10. Securities registered pursuant to Sections 8 and 12 of the SRC
Title of Each Class Number of Shares of Common Stock
Licensed and Amount of Debt Outstanding
Attached hereto is a press release issued by Moody’s Investors Service (Moody’s) entitled “Moody’s Review PLDT’s Ba1 Local Currency Rating for Possible Upgrade; Affirms Ba2 Foreign Currency Ratings with a Negative Outlook”.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.
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PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
MA. LOURDES C. RAUSA-CHAN Corporate Secretary
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Date: March 29, 2006
Distribution Copies: 5 copies – Securities & Exchange Commission
1 copy - Philippine Stock Exchange
1 copy - Company Secretary
Moody’s Investors Service Global Credit Research
Rating Action
29 MAR 2006
Rating Action: Philippine Long Distance Telephone Company
MOODY'S REVIEW PLDT'S Ba1 LOCAL CURRENCY RATING FOR POSSIBLE UPGRADE; AFFIRMS Ba2 FOREIGN CURRENCY RATINGS WITH A NEGATIVE OUTLOOK
Hong Kong, March 29, 2006 --Moody's Investors Service today placed the Ba1 local currency corporate family rating of the Philippine Long Distance Company (PLDT) on review for possible upgrade. At the same time, Moody's affirmed PLDT's Ba2 foreign currency senior unsecured ratings, with a negative outlook.
"The review has been prompted by a continual improvement in PLDT's financial profile and the consolidation of its strong operating profile," says Charles Macgregor, Moody's Vice President/Senior Credit Officer.
"The company commands over 60% of revenue in the Philippines telecommunications market, where there is only one major competitor, which provides PLDT with a healthy platform for cash flow generation," adds Macgregor, who is the lead analyst for the company.
The review will focus on: [1] growth prospects; [2] capex requirements given prospective investment in 3G technology and a next generation fixed network; [3] possible structural subordination, given debt at its Smart Cellular subsidiary; [4] financial policies for the next 2-3 years; and [4] PLDT's liquidity risk profile to ensure that it is appropriate for an investment grade company. Moody's expects to complete its review by the end of June 2006.
PLDT's foreign currency senior unsecured debt rating of Ba2 -ve is above the Philippines' foreign currency country ceiling of B1 -ve. The foreign currency senior unsecured debt rating incorporates convertibility risk, which is the likelihood of the government declaring a debt moratorium to counter a foreign currency crisis. Moody's views foreign currency bonds subject to international law as less likely to be subject to a debt moratorium than foreign currency obligations subject to local law. Therefore, there is a differential between PLDT's foreign currency bond rating and the sovereign rating. As such, PLDT's foreign currency bond rating is a function of its own risk of default and the probability of a Philippine government default on its foreign debt (implied by its B1 rating), the likelihood that the government would declare a moratorium in the event of a default, and if it did, the chances that it would exempt a company such as Globe.
Moody's affirmation of PLDT's foreign currency ratings reflects the correlation with the Philippine sovereign country ceiling. PLDT's foreign currency ratings are unlikely to rise absent either an improvement in the sovereign rating or a significant improvement in PLDT's local currency rating.
Philippine Long Distance Company, based in Manila, Republic of the Philippines, is that country's leading provider of integrated telecommunications services.
Sydney
Brian Cahill
Managing Director
Corporate Finance Group
Moody's Investors Service Pty Ltd
JOURNALISTS: (612) 9270-8102
SUBSCRIBERS: (612) 9270-8100
Sydney
Charles F. Macgregor
VP -Senior Credit Officer
Corporate Finance Group
Moody's Investors Service Pty Ltd
JOURNALISTS: (612) 9270-8102
SUBSCRIBERS: (612) 9270-8100
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
By :
Name : Ma. Lourdes C. Rausa-Chan
Title : Corporate Secretary
Date: March 29, 2006