Bangkok--9 Feb--Fitch Ratings
Fitch Ratings-Bangkok/Singapore-9 February 2011: Fitch Ratings has said in a new special report that the Thai telecoms sector should remain financially robust in 2011, although the sector continues to face heightened legal and regulatory risks which could impact the financial performance of the major private telecom operators.
In the report, Fitch notes that strong growth in non-voice revenue, low gearing and high rating headroom should help offset lower margins from higher competition and a maturing voice service. However, legal and regulatory risks could have a negative impact on the operators’ business and financial profiles. Notably, the review of concessions for private telecoms operators could lead to substantial monetary claims by the state-owned telecom companies - TOT Public Company Limited and CAT Telecom Public Company Limited - against their concessionaires, Advanced Info Service Public Company Limited (‘BBB+’/Stable), Total Access Communication Public Company Limited (‘BBB’/Stable) and True Move Company Limited or possible revocation of concession rights. Other concerns include a tightening of foreign ownership laws, which could affect new investment and shareholder support.
The report - “Thai Telecom Sector in 2011 - ‘Rising Risks from Legal and Regulatory Issues’” - is available at www.fitchratings.com or by clicking on the link above.
Link to Fitch Ratings’ Report: Thai Telecom Sector in 2011
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=602631
Contacts:
Obboon Thirachit
Associate Director
+66 2655 4757
Fitch Ratings (Thailand) Limited
Wave Place 13th Floor
Wireless Road, Lumpini, Patumwan
Bangkok 10330, Thailand
Pimrumpai Panyarachun
Associate Director
+66 2655 4752
Matt Jamieson
Senior Director
+822 3278 8355