Bangkok--Jan 24--Fitch Ratings
Fitch Ratings (Thailand) Limited comments that there is no immediate impact on national ratings of Thailand-based Advanced Info Service Plc (“AIS”) following the change in Shin Corporation’s (“SHIN”) major shareholders. Fitch views that due to AIS’s existing strong position, a potential support from major shareholders has less credit implication as compared to companies in a lower credit curve. SHIN today disclosed that its new major shareholder, Temasek Holdings — an investment arm of Singapore government and a major shareholder of Singapore Telecommunications Limited (“SingTel”, rated ‘A’/Positive Outlook), has invested in the company as a financial investor.
“Nonetheless, there may be more credit implications on AIS in the medium-term should Fitch see more involvement or synergy from SingTel,” said Orawan Karoonkornsakul, Senior Director in Corporate in Fitch Ratings (Thailand) in Bangkok. “This could eventuate if SingTel was to raise its direct stake in AIS.”
AIS is currently rated ‘AA(tha)/Stable Outlook/F1+(tha)’.SHIN, which owns 42.8% in AIS, announced that its major shareholders comprising two founder families, Shinawatra and Damapong, had sold their 49.6% stake in SHIN to Cedar Holdings Limited and Aspen Holdings Limited, companies controlled by Temasek Holdings. According to SHIN, management level for most part remains unchanged for the company and its subsidiaries while SHIN will continue to set the group’s operational and strategic directions.
Established in 1986, AIS is Thailand’s largest cellular operator with 55% market share. AIS’ major shareholders comprise SHIN - the country’s leading telecom conglomerate founded by the Shinawatra family - and SingTel — Singapore’s incumbent telecom operator and a leading regional telecom investor. SHIN and SingTel hold approximately 42.8% and 19.3% respectively of AIS.
Contatc: Orawan Karoonkornsakul, Vincent Milton; Bangkok, Tel: +662 655 4755, Jonathan Cornish; Hong Kong, +852 2263 9901.
Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with sub- or low-investment grade international sovereign ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(tha)’ for National ratings in Thailand. Specific letter grades are not therefore internationally comparable.
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