...Solid Market Position: The ratings of Philippine Long Distance Telephone Company (PLDT) reflect its position as the largest telecom operator in the Philippines, with more than a 57% revenue market share in mobile and broadband, and a 70% subscriber share in fixed-line, at 1H14. Fitch Ratings expects its operating EBITDAR margin to be 47% in 2015 (2013: 48%), wider than most regional peers, thanks to the duopoly market structure and relatively benign competition and regulatory risks in the Philippines. Reduced Local-Currency IDR Headroom: Headroom on the Long-Term Local-Currency IDR (LT LC IDR) will decrease as 2015 FFO-adjusted net leverage could rise to 1.8x-1.9x (1H14: 1.9x), closer to the 2.0x level at which Fitch may consider negative rating action. The Long- Term Foreign-Currency IDR (LT FC IDR) is capped by the Philippines' Country Ceiling of 'BBB' ¡ two notches below the LT LC IDR ¡ which reflects the additional risks associated with transfer and convertibility of foreign currency....
