Ratings firms Moody's Investors Service said it is mulling to revise its rating on a debt instrument of Philippine Long Distance Telephone Company's (PLDT) to reflect uncertainties in the firm's recent P20 billion-worth acquisition of a stake in Manila Electric Co. (Meralco).

In a statement released Monday, Moody's said it will review its Baa2 issuer rating on PLDT's local currency for a possible downgrade to reflect the impact of the acquisition.

Moody's, however, has affirmed its Ba2/positive rating on PLDT's foreign currency bond.

"While the acquisition can largely be funded out of cash on hand and without any material adverse impact on PLDT's consolidated financial metrics, which remain strong for a Baa rating, it will reduce the company's liquidity reserves," said Laura Acres, a Moody's Vice President.

"The acquisition also raises concerns as it represents a move by shareholders and senior management into a non-core business, albeit into another utility with a small telecommunications-related business with an established fiber optic network covering the Metro Manila area," noted Acres, also Moody's lead analyst for PLDT.