Moody’s upgrades Globe’s credit rating
Credit ratings firm Moody’s Investors Services yesterday said it upgraded the credit ratings of publicly listed telecommunications firm Globe Telecom, Inc. after considering the support that the firm could expect from one of its biggest shareholders, state-owned Singapore Telecom (Singtel).
Moody’s said that it upgraded Globe’s senior unsecured foreign currency debt rating to Ba3/POS from Ba2/NEG and affirmed the company’s long-term domestic currency corporate family rating at Baa3/POS.
This was after the ratings firm evaluated Globe under the new joint-default analysis (JDA) rating methodology, which classified the Ayala-owned company as a government-related issuer by virtue of having Singtel as its shareholder.
Singtel has a 44% stake in Globe.
"The JDA rating methodology considers Singapore Telecom’s ownership in Globe and Moody’s assessment that it will act in such a way to enable the Company to avoid a default on its debt obligations," Globe said in a disclosure to the Philippine Stock Exchange.
FOREIGN SUPPORT
Globe got the upgrade as Sing-tel’s stake in the company implied that the former could get support from the state-owned and highly rated Singaporean telecommunications company and, thus, was less likely to default on its obligations.
Having Singtel as a major shareholder effectively made the securities issued by Globe safer investments.
The impact of the credit upgrade on Globe is not likely to be immediate as the company as yet has no plans of tapping the debt market.
Existing holders of Globe securities, however, will benefit from the credit upgrade as the move makes the bonds more attractive.
Moody’s yesterday published the results of its examination of the ratings of corporate government-related entities in Asia Pacific, including Japan, in light of the new rating methodology for joint default analysis.
It said that the new methodology formally disaggregates the ratings of government related institutions (GRI) into four components: an assessment of their baseline credit risk, the default risk of the supporting government, the default dependence between the GRI and the government and the expected level of support from the government.
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Globe Telecom (GLO)
Globe Telecom (GLO)
Last edited by dragon on Mon Nov 13, 2006 5:48 pm, edited 1 time in total.
I maintain a sell on rally call on GLO. Projected future earnings (as done by brokers) is unexciting - relatively flat over the next 2 years. Baka matagal-tagal na hintayan yan.
Their marketing is also too conservative compared to Smart/Talk N Text. They're also slow to offer new products that they always end up just offering something similar to the competition. They're not proactive but always reactive.
yamada, i agree, have been a loyal subscriber of globe for 11 years longer than almost anybody else, since oct. 3, 1994 at un avenue, then i have to literally beg to have a new phone, not that we cant afford, but i feel i deserve, then when i told them i want to disconnect permanently and eventually did, here they are calling me up yesterday offering me a Php 35k discount on any phone just to woo me back, unfortunately, or fortunately, i already have smart, globe has always been reactive and not reactive, that is why they never really grew. kaya sell.
medyo madaya din globe.
assuming your plan is plan 500. and you call or text a smart line phone, that particular call or text won't be included within your plan 500. it would be 500 PLUS the length of your calls or text to other cellular providers. in smart, it is all inclusive regardless which carrier you text or call to.
and if you have globe you want to call smart, dragon, they cannot hear you, but if smart calls you , then you can hear each other. really globe may be desparate already, poor marketing strategies.
been a globe subscriber for 8 years
2 days ago i had my line disconnected i switched to smart edit add: my reason for switching my phone was stolen a couple of weeks back, i reported it and i was assured that i would get a replacement sim within the next day. it took them a week to get my line up and running what was suppose to be a routine sim activation was a mess this is how they treat loyal members when my phone was stolen. i bought a cheap replacement phone within the day but then for a week my "main" cellphone sim was still unreachable. they didnt even had the consideration to at least reimburse me for the week that was lost. take note this is my main line.
Never had a major problem with Smart when I switched. To be on the safe side, I verified with Globe first if they will give me a new phone if I upgrade my plan from the old 275/month (+ VAT = 300+ in actuality) to plan 500. They flatly said NO.
No problem, I already had plans to switch anyway since I felt I was getting the short end of the stick with them. When I switched to Smart, they accepted by old sim, old beat up phone (literally, cracked na kasi ang casing and sira na rin many parts of the phone) with no questions asked. Dami ko pa nakuhang freebies sa kanila, including 2 Martin Nievera concert tickets that were valued at P1200 each (sa totoo lang, P2.50 lang gastos ko for the text). After 2 years, I renewed my plan and they had me choose what phone I'd like to have at a big discount. Sayang no freebie na but hey, 800 bucks for 3315 ain't so bad since ninakaw din ang 3310 ko for eload selling.
i disagree.... plan 500 includes calls to SMART or other networks. This is not applicable to the old plans. am sure about this. Globe Tel would rather invest in other services. Considering telcos are being "phone driven" industry, Globe would rather invest its capital in Value Added services, network and the like.
i see that the "cockroach theory" still applies to globe. almost 70% drop in 2nd qtr net income. eeekk! siguro tama lang na bibilhin niya ang abs-cbn. isang palugi at isang nalulugi.
there are a lot of better stocks out there.
Support Level of GLO
Looks like downtrend of GLO has started... What is the support level of this stuck ?
Thanks for any inputs.
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