SECURITIESAND EXCHANGE COMMISSION

Washington, D.C.20549

 

FORM6 -K

 

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 or 15d-16 OF

THESECURITIES EXCHANGE ACT OF  1934

 

Report on Form 6-K dated September 1, 2005

(Commission File No. 1-15024)

 

 

PHILIPPINELONG DISTANCE TELEPHONE COMPANY

(Nameof Registrant)

 

Ramon Cojuangco Building

Makati Avenue, Makati City

Philippines        0721

(Addressof Principal Executive Officers)

 

 

Indicateby check mark whether the registrant files or will file annual reports undercover of Form 20-F or Form 40-F:

 

| Form 20-F:  y | Form 40-F:  o |
|---------------|---------------|

 

Indicateby check mark if the registrant is submitting the Form 6-K in paper aspermitted by Regulation S-T Rule 101 (b) (1):

 

| Yes:  o | No:  y |
|---------|--------|

 

Indicateby check mark if the registrant is submitting the Form 6-K in paper aspermitted by Regulation by Regulation S-T Rule 101 (b) (7):

 

| Yes:  o | No:  y |
|---------|--------|

 

Indicateby check mark whether the registrant by furnishing the information contained inthis form is also thereby furnishing the information to the Commission pursuantto Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

| Yes:  o | No:  y |
|---------|--------|

 

 

 

 

 

 

 

 

 

 

 

Enclosure:

 

 

 

A copy of thedisclosure letter we sent today to the Philippine Stock Exchange and theSecurities and Exchange Commission regarding the press release issued byStandard & Poor’s (S & P) dated August 31, 2005 regarding S & P’s rating of PLDT’sforeign currency debt and preferred stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

September 1, 2005
 
 

 

The Philippine Stock Exchange
Disclosure Department

4th Floor PSE Centre

Exchange Road, Ortigas Center

Pasig City

 

Attention:        Ms. Jurisita M. Quintos

Senior VicePresident

 

Ladies and Gentlemen:

 

In compliance withSection 17.1(b) and Section 17.3 of the Securities Regulation Code, we submitherewith a copy of SEC Form 17-C with a press release issued by Standard andPoor’s (S & P) attached thereto.  The press release covers S & P’srating of PLDT’s foreign currency debt and preferred stock.

This shall also serve as the disclosure letter for thepurpose of complying with PSE Corporate Disclosure Requirements.

 

Respectfully yours,

 

 

MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

MLCRC:amq

Encs.

 

 
****
 

September 1, 2005

 

 

SECURITIES & EXCHANGECOMMISSION

Money Market OperationsDepartment

SEC Building, EDSA

Mandaluyong City

 

Attention    :         DirectorJustina F. Callangan

                             CorporationsFinance Department

 

Gentlemen:

 

Re       :           Philippine LongDistance Telephone Company

                   SECRegistration No. PW-55

 

In accordance withSection 17.1 (b) of the Securities Regulation Code, we submit herewith five (5)copies of a Current Report with a press release issued by Standard and Poor’s(S & P) attached thereto.  The press release covers S & P’s rating ofPLDT’s foreign currency debt and preferred stock.

 

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.                 September 1, 2005

(Date of earliest event reported)

 

2.                 SEC Identification Number  PW-55

 

3.                 BIR Tax Identification No. 000-488-793

 

4.                PHILIPPINE LONG DISTANCETELEPHONE COMPANY                                        

          Exact name ofregistrant as specified in its charter

 

5.       PHILIPPINES                                           6._____________ (SEC Use Only)  

           Province, country or otherjurisdiction               Industry Classification Code

           ofIncorporation

 

7.         10thFloor PLDT Tower I, Ayala Avenue, Makati City                  1200 

            Addressof principal office                                                               PostalCode

 

8.         (632)814-3664                                           

           Registrant'stelephone number, including area code
 

9.         NotApplicable                                                               

            Formername or former address, if changed since last report

 

10.       Securitiesregistered pursuant to Sections 8 and 12 of the SRC

 

            Title ofEach Class                            Number of Shares of Common Stock

          Licensed and Amount of Debt Outstanding

 

 

 

 

          Attached heretois a press release issued by Standard & Poor’s (S & P).  The pressrelease covers S & P’s rating of PLDT’s foreign currency debt and preferredstock.

 

 

 

SIGNATURE

 

          Pursuant to therequirements of the Securities Regulation Code, the Registrant has duly causedthis report to be signed on its behalf by the undersigned hereto dulyauthorized.

 

 

 

 

PHILIPPINE LONG DISTANCE

TELEPHONE COMPANY

 

 

 

MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

 

 

 

Date:  September 1, 2005

 

Distribution Copies:  5 copies –Securities & Exchange Commission

                        1copy    - Philippine Stock Exchange

                                    1copy    - Company Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

FC Rating On PLDT Affirmed At ‘BB-‘; Outlook Negative

 

****

 

SINGAPORE (Standard & Poor's) Aug. 31, 2005-Standard & Poor's Ratings Services said today it affirmed its 'BB-' foreign currency ratingon Philippine Long Distance Telephone Co. (PLDT), the leadingtelecommunications operator in the Philippines. The outlook is negative. At thesame time, the rating on PLDT's existing series III preferred stock was to ‘B+’from ‘B’.

     "The rating on PLDT benefits from the company'sdominant market position and its improving financial profile, although thesestrengths are offset by slowing domestic subscriber growth, heightenedcompetition, and the risk of peso depreciation," said Standard &Poor's credit analyst Yasmin Wirjawan. "The negative outlook reflects thatof the sovereign ratings on the Philippines." 

     PLDT is the largest and most diversified telecommunicationsprovider in the Philippines. The company had a wireless subscriber base ofabout 20.8 million, representing a market share of 57%, compared with 38% forits main competitor, Globe Telecom Inc. In the fixed line market, PLDT is themarket leader with 60% share, or 2.1 million lines in service. 

     The company’s financial profile has improved significantlyfollowing its deleveraging program. Its annualized funds from operations (FFO)to total debt improved to 41% at June 30, 2005, compared with its three-year(2002-2004) average of 17%. This ratio is expected to improve to about 40%-50%in the next three years after gradual debt repayment. Debt to EBITDA, whichreached 1.9x as at June 30, 2005, is expected to improve to about 1.5x byyear-end 2006, due to its plan to reduce debt by US$600 million by year-end2005.

     PLDT's liquidity is adequate. At June 30, 2005, the company's cash of Philippine peso (PHP) 36 billion (US$643 million) was more thanenough to cover PHP30 billion of debt due in one year.

     “Nevertheless, PLDT is exposed to the risk of peso weakness,as about 98% of its US$2.5 billion debt is denominated in foreign currency,”said Ms. Wirjawan. About half of the company's total debt is covered by hedgesand U.S. dollar cash balance (equivalent to US$351 million as at June 30, 2005). To some extent, the risk of peso depreciation is mitigated by the linkageof about 40% of PLDT’s revenues to the U.S. dollar. About 18% of PLDT’s U.S.dollar linked revenues are sourced from the monthly charges payable by postpaidfixed-line users. This monthly charge may substantially increase if thePhilippine peso depreciates significantly over a short period of time, whichcould result in higher receivables.

     In addition, pricing competition in the cellular market hasintensified due to slowing domestic subscriber growth and the entry of a thirdplayer, Digital Telecommunications Ltd. (Digitel). Although Digitel is unlikelyto pose a significant competitive threat to PLDT in the near to medium term,pricing pressures have emerged as existing operators pursue aggressive pricingand promotions to build market share. 

      In themedium term, Standard & Poor's expects the rating on PLDT to be driven byits ability to improve its liquidity and liability management, and to maintainits solid market position and steady cash flows amid increasing competition.

 

Complete ratings information is available to subscribers ofRatingsDirect, Standard & Poor's Web-based credit analysis system, atwww.ratingsdirect.com. All ratings affected by this rating action can be foundon Standard & Poor's public Web site at www.standardandpoors.com; underCredit Ratings in the left navigation bar, select Find a Rating, then CreditRatings Search.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

 

 

Pursuant to the requirements of the Securities Exchange Actof 1934, the registrant had duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

 

 

 

PHILIPPINELONG DISTANCE TELEPHONE COMPANY

 

 

 

 

By:  MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

 

 

Date:September 1, 2005