Bangkok--9 Nov--Moody's Moody's Investors Service has changed to negative from positive the rating outlook for Advance Agro Public CompanyLtd's ("Advance Agro") B3 corporate family rating and B3 senior unsecured bond rating. The outlook change is in response to Advance Agro's announcement that its Board of Directors has received a purchase offer for the company's shares from Mr. Yothin Damnerncharnwanit, a current director and shareholder, for Baht 39 per share, or a total consideration of approximately Baht 21 billion. The buyout is subject to shareholder approval and Advance Agro's shares will be de-listed upon completion of the transaction. The negative outlook mainly reflects: 1) the uncertainties pertaining to Advance Agro's financial and business strategies; and 2) Moody's concerns about the company's corporate governance and level of disclosure post-privatization. Moody's also notes that Advance Agro's year-to-date operating performance has deteriorated and is below expectation. The rating could be downgraded if there is evidence of weakening in thecompany's corporate governance and disclosure practices, or further deterioration in the company's financial profile with EBITDA/Interest falling below 1.2-1.5x. Upward rating pressure is limited given the current negative rating outlook. However, the outlook could stabilize if Advance Agro's business and financial profiles post-privatization become more certain, while at the same it stabilizes its operating performance. Advance Agro Public Company Limited, headquartered in Bangkok, Thailand, is an integrated producer of pulp, uncoated free sheet and coated paper. Hong Kong Ken Chan Asst Vice President - Analyst Corporate Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121 Hong Kong Gary Lau Senior Vice President Corporate Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121