Bangkok--24 Jul--Moody's Investors Service Moody's Investors Service has today affirmed the B1 corporate family rating and senior unsecured bond rating of True Move Company Limited ("True Move"). At the same time, Moody's has assigned a (P)B1 rating to the company's proposed bond offering to refinance the outstanding long-term Thai Baht denominated syndicated loan facility. The outlook on these ratings is stable. "The B1 corporate family rating reflects True Move's established network and subscriber base, and the ongoing growth evident in the Thai cellular market. The rating also takes into account the close links between the credit profiles of True Move and True Corp (B1/stable), given the former's integral operational position within the group and its growing cash flow contribution," says Laura Acres, Moody's Vice President. "On the other hand, such credit strengths are offset by True Move's distant third-ranking market share, the increasingly competitive nature of the Thai cellular market and its high financial leverage, all of which may impair its ability to fully execute its business plan," adds Acres, also Moody's Lead Analyst for the company. The B1 rating also considers True Move's ongoing waiver of financial covenants under its Thai banks loan facility. Currently, True Move has been granted waivers from its lenders until 30th September, 2007. Moody's notes that this risk will be partially mitigated by the proposed bond issue which will refinance the existing Thai banks loan facilities. Upon closing of the refinancing, the covenant waiver overhang from the Thai banks will cease to exist. Moody's considers the credit profile of True Move to be highly correlated with that of True Corp, given its operational position within the group -- True Move contributes approximately 43% of consolidated revenues and 35% of True Corp's group debt. Given the degree of inter-relation between the various group entities and the movement of funds between them, Moody's views the core group companies (True Corp and True Move) as having the same risk profile. Given the current credit profile of True Corp. and True Move, ongoing regulatory uncertainties and the existence of various covenant waivers within the group, it is unlikely that the rating will be upgraded in the next 12-18 months or until the company is able to demonstrate a sustainable ability to operate within its bank covenants, uncertainty surrounding its concession are resolved or stabilized and there are improvements in its credit metrics. The most immediate likely drivers of negative rating action are: 1) True Move fails to obtain the necessary approval for the extension of the financial covenant waiver under its bank facilities or fails to complete its proposed refinancing exercise; and/or 2) True Corp. fails to negotiate covenant waivers or amendments by 30th September, 2007 for its own bank facilities. Furthermore, True Move's ratings could undergo downward rating pressure if a) further regulator actions impact the operating profile of the company; or b) it experiences greater competition and furtherliberalization -- so that its financial profile does not improve as evidenced by adjusted debt/EBITDA increasing much beyond 5x. Headquartered in Bangkok, True Move (formerly TA Orange) with 8.1 million subscribers (as of 31st March 2007) is Thailand's third largest mobile operator. It holds a concession until 2013 to operate a 1800-MHz cellular business from CAT Telecom Public Co. Ltd. (state-owned). Its (93%) major shareholder, True Corp, is an integrated provider of fixed-line, broadband, internet, mobile services and pay TV (the latter via its recent acquisition of True Visions (formerly UBC)). Listed on the Thai Stock Exchange, True Corp's major shareholder is the Charoen Pokphand Group with an approximate 30.4% shareholding. Hong Kong Laura Acres Vice President - Senior Analyst Corporate Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121 Singapore Alan Greene Senior Vice President Corporate Finance Group Moody's Singapore Pte Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (65) 6398-8308