Bangkok--13 Sep--Fitch Ratings
Fitch Ratings has today said in a just published special report that it remains concerned about the ongoing policy, legal and regulatory risks facing Thai telecom operators.
“Although the issuance of 3G licences could prove a positive step towards industry restructuring, leverage could rise sharply, if the final auction price is significantly higher than expected,” said Obboon Thirachit, Fitch’s Associate Director of Thai Corporates. “However, Fitch anticipates that the two largest operators, Advanced Info Service (‘BBB+’/Stable) and Total Access Communication (‘BBB-’/Stable), should have the financial flexibility to absorb higher investment costs with growth in non-voice revenue boosting earnings in the medium term,” Mr. Thirachit added.
The report -- ``Thai Telecom Sector — ‘Strong Financial Profile, but Higher Risks Ahead’’ -- is available at www.fitchratings.com or by clicking on the link above.
Contacts:
Obboon Thirachit
Associate Director
+66 2 655 4757
Wave Place 13th Fl., 55 Wireless Road
Lumpini, Patumwan
Bangkok,
Pimrumpai Panyarachun
Associate Director
+662 655 4752
Matt Jamieson
Senior Director
+822 3278 8355
Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such 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.
Additional information is available at www.fitchratings.com.
Applicable Criteria available on Fitch’s website at www.fitchratings.com: ‘Corporate Rating Methodology’ dated 16 August 2010.