TRIS Rating affirms the company rating on True Corporation Public Company Limited (TRUE) and the ratings on TRUEs outstanding senior unsecured debentures at BBB+, as well as the rating on TRUEs partially guaranteed debentures at A-, with a stable outlook.
At the same time, TRIS Rating assigns the rating of BBB+ to TRUEs proposed issue of up to THB20 billion in senior unsecured debentures. The proceeds from the new debentures will be used to refinance existing debt and/or for spectrum license payment and/or working capital needs.
The ratings reflect TRUEs strong business profile as a leading integrated telecom company in Thailand, its solid competitive positions in both the wireless communications services and broadband internet markets, as well as the company’s improving operating results.
The ratings also take into account the ongoing support it receives from the CP Group, its major shareholder, and China Mobile International Holdings Ltd. (China Mobile) as a strategic partner.
However, the ratings are weighed down by the company’s high level of financial leverage and the intense competition in its core businesses. The ratings also take into consideration the capital expenditures required to roll out networks and for spectrum license payments.