TRIS Rating Affirms Current Ratings of "TRUE" and Assigns Rating to Its New Debentures

        TRIS Rating Co., Ltd. has affirmed the company rating of True Corporation PLC (TRUE) at "BBB" and has also affirmed the ratings of "BBB" to TRUE's senior secured debentures (TRUE087A and TRUE07OA). TRIS Rating has also affirmed a "A" rating to TRUE's senior secured debentures (TRUE112A), partially guaranteed (50% of principal) by the International Finance Corporation (IFC). At the same time, TRIS Rating has assigned a "BBB" rating to TRUE's up to Bt2,402.7 million senior secured debentures. The proceeds from TRUE#4 will be used to refinance TRUE's loan from Kreditanstalt F?r Wiederaufbau (KfW). After refinancing, TRUE's debt repayment obligations will peak during 2007-2010 at around Bt7,300-Bt9,000 million per annum. TRUE's credit ratings could be negatively affected if it makes major investments that require substantial amounts of debt financing. 
        TRIS Rating reported that the ratings continue to reflect TRUE's position as the leading integrated fixed-line telecommunications company in Bangkok, its competent management team and its growth strategy encompassing investments in wireless services.  These strengths are partially offset by TRUE's vulnerable financial position (on a stand-alone basis) stemming from its significantly high leverage, the threat of product substitution from mobile phones, and the remaining uncertainty surrounding the telecommunications regulatory framework.  
        TRIS Rating also said that while the credit ratings of the TRUE087A, TRUE07OA and TRUE#4 issues are based solely on TRUE's creditworthiness, the credit rating of the TRUE112A issue is enhanced by the partial guarantee provided by the IFC, which is a member of the World Bank Group, and is rated "AAA" by Standard & Poor's and "Aaa" by Moody's Investors Service. - End
True Corporation PLC (TRUE)Company Rating:                                                                         Affirmed at BBBIssue Ratings:TRUE087A: Bt11,715.40 million senior secured debentures due 2008                        Affirmed at BBBTRUE112A: Bt6,750 million senior secured partially guaranteed debentures due 2011       Affirmed at ATRUE07OA: Bt3,319 million senior secured debentures due 2007                            Affirmed at BBBTRUE#4: Up to Bt2,402.7 million senior secured debentures due 2011                                  BBB