S&P cuts True Move

Standard & Poor's said it lowered its corporate credit rating on True Move Co. Ltd. to B+ from BB-.

The outlook is negative.

The rating downgrade and negative outlook reflect those on the rating of the parent company, True Corp. Public Co. Ltd. (B+/negative), indicative of the group's weaker credit profile due to low earnings visibility and the risk of higher regulatory costs related to True Move's pending interconnection settlement and access charges, the agency said.

These factors have resulted in a slower than anticipated deleveraging program, the agency noted, adding that True Corp. continued to book net recurring losses in the first three months of 2007 and profitability pressure should persist in the fixed-line and wireless segments amid intense competition in the domestic telecom market.

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