That's not how credit rating agencies like S&P see it......clearly, they see it as a problem that could warrant a rating downgrade for PLDT........you could also see that the earning growth of the growth is suffering a lot with a negative 60% growth in 2022 .......and the stock price was not just fluctuating....it really has a downward trend since the start of 2022 showing how the market perceives PLDT which is not really doing well to the shareholders........as CEO, you cannot just blame it to your CFO......the buck stops at the CEO.....it is his responsibility to ensure that the CFO is doing his job well.....it is the job of the CEO (Panlileo) to ensure that PLDT's performance is on the right track whether it is about finance, operation, marketing etc.
s&p credit ratings are not credit scores
credit rating is used to determine the creditworthiness of a
business meaning the probability of them defaulting on payments. it is calculated using corporate financial instruments - so everything is offered in good faith by companies.
on the other hand, a credit score is given to
individuals to rate their creditworthiness and plays a role in determining whether or not they are approved for loans and credit cards.
credit ratings are also grouped into two types of grades – ‘investment grade’ and/or ‘speculative grade’.
investment grade refer to the fact that the investment made is solid, and the borrower will most likely meet the repayment terms, thus, they are often priced less
meanwhile speculative grade show that the investments are at a higher risk, and they often have higher interest rates as a safety net
so basically the impact of the downgrade of pldt is that they have to pay more interest if they need credit for any financing, its not like they're being blacklisted nor have they defaulted on any loans nor does it mean that they are cash strapped.
what al has basically done since he stepped into his ceo role is to renegotiate and even terminate non-priority long term contracts (paying the termination fees of course) to lessen and make the overrun not only more manageable but more palatable to investors pldt being a publicly listed company.