...Moderate Ratings Headroom: Fitch Ratings expects Philippine telecoms operators to maintain stable credit profiles, with high ratings headroom for Philippine Long Distance Telephone Company (PLDT, BBB/Stable) and Globe Telecom, Inc.'s (Globe, BBB-/Stable) Foreign-Currency IDR. A free cash flow (FCF) deficit is likely to continue in 2016, as we expect cash flow from operations to fall short of high capex and dividends commitments. High Investments: Aggressive network expansion in 3G/4G and fixed broadband will keep capex high at around PHP85bn in 2016 (2015F: PHP83bn). Fitch believes PLDT and Globe will need to invest in bigger pipes and content, ahead of the possible entry of a new mobile entrant and the government's proposed rollout of free WiFi nationwide by 2016. PLDT is also likely to expand its digital initiatives through small acquisitions. New Competition, Limited Impact: Fitch expects the impending entry of the Telstra Corporation Limited (A/Stable) San Miguel Corporation (SMC) joint...
