TRIS Rating Co., Ltd. has affirmed the rating of Nestle (Thai) Ltd.’s (NTH or Issuer) guaranteed debentures (NTH086A) at “AAA” with “stable” outlook. The debentures are guaranteed unconditionally and irrevocably by Nestle S.A. (Guarantor), which owns 100% of NTH. The issue rating is based on the credit quality of the Guarantor, which is rated “Aa1” with a “negative” outlook by Moody’s Investors Service (Moody’s). The Guarantor is also rated “AA” by Standard and Poor’s (S&P), with a “stable” outlook. Although the Guarantor’s ratings were downgraded from “Aaa” and “AAA” by both rating agencies in August 2007 after Nestle S.A.’s announcement of 3-year SFr25 billion share buyback program, the ratings of the Guarantor are higher than Thailand’s sovereign ratings (local currency rating), which are rated “Baa1” by Moody’s and “A” by S&P. The Guarantor has agreed to guarantee the payment of a maximum amount equal to Bt5,500 million. Although the Guarantor shall not be liable for the guaranteed debentures in the event that the intervention of any government agency of Thailand expropriates or nationalizes the assets of the Issuer, TRIS Rating believes that such an event is highly unlikely. The “stable” outlook of NTH’s guaranteed debentures reflects the very strong credit profile of the Guarantor, Nestle S.A., which is rated “Aa1” by Moody’s and AA” by S&P. TRIS Rating reported that, under the guarantee, the Guarantor irrevocably and unconditionally guarantees, as joint and several Guarantor under Article 496 of the Swiss Code of Obligations, to make payment on demand to the debentureholders’ representatives of the principal and any other amounts payable by the Issuer up to a maximum amount of Bt5,500 million. This maximum amount covers the overdue principal, overdue interest, and any other amounts owed with respect to the debentures. However, the Guarantor will not be liable to pay any amount pursuant to this guarantee to the extent that the Issuer’s failure to pay has resulted from the occurrence of: the expropriation or nationalization by any government agency of Thailand equal to or exceeding 10% of the consolidated fixed assets of the Issuer and its subsidiaries; or the expropriation or nationalization that has the effect of preventing the Issuer and its subsidiaries from carrying on business; or, the transfer by intervention from any government agency of Thailand of the majority shareholding in, or control over, the Issuer to an entity that is not a member of the Nestle Group. This guarantee is governed by Swiss law. TRIS Rating said that Nestle S.A., the ultimate holding company of the Nestle Group, is a public company listed on the Swiss Exchange. In the view of S&P, the rating for Nestle S.A. reflects the group’s leading position in branded and packaged food in the global marketplace, its ability to generate strong and stable cash flow, an extremely diversified product portfolio and a geographically-diverse customer base. S&P expects that Nestle’s changing financial policy, which is reflected by the announcement of 3-year SFr25 billion share buy-back program, will prevent the restoration of Nestl?’s financial measures. -- EndNestle (Thai) Ltd. (NTH)Issue Rating:NTH086A: Bt5,000 million guaranteed debentures due 2008 Affirmed at AAARating Outlook: Stable-----------------------------------------------------------------------Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.