Bangkok--7 Nov--Moody's Investors Service
Approximately US$690 million of debt securities affected
Moody's Investors Service will continue to monitor the potential impact of a proposed Bt19.5 billion rights issue by True Corporation Public Company Limited ("True Corp") on the B1 corporate
family rating of True Corp and the B1 corporate family and senior unsecured bond ratings of True Move Company Limited ("True Move"). The outlook on all ratings remains negative.
This follows today's announcement that True Corp seeks to raise up to Bt19.5 billion by way of a rights issue to existing shareholders. Funds will be used to repay outstanding debt, fund capex, and buy-back BITCO shares from True Corp's major shareholder, the Charoen Pokphand Group ("CP Group").
Moody's understands that the rights issue is not underwritten however management have informed us that the major shareholder has indicated its intention to retain their shareholding portion.
As such, given the current level of market uncertainty and questions over the ability of True Corp to raise such funds, Moody's will continue to monitor the situation and will keep the market informed of any potential rating impact. In addition, Moody's will evaluate the soon to be announced Q3 2008 results, liquidity position and ability to comply with covenants at the next testing date for both True Corp and True Move.
Headquartered in Bangkok, True Corp is an integrated provider of fixed line, broadband, internet, mobile services and cable TV in Thailand.
True Corp is listed on the Thailand Stock Exchange and the CP Group is the major shareholder with approximately 30% shareholding. Its wireless business is predominantly conducted through its 75.3% owned subsidiary True Move, Thailand's third largest mobile telecommunications operator; and its pay TV business is conducted through its 91.8% owned True Visions Public Company Limited (True Visions), which is currently the only nationwide provider of pay television services in the country.
Hong Kong
Laura Acres
Vice President - Senior Analyst
Corporate Finance Group
Moody's Asia Pacific Ltd.
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Tony Tsai
Senior Vice President
Corporate Finance Group
Moody's Singapore Pte Ltd.
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