The rating reflects DTAC’s market position as a major mobile phone service provider in Thailand, easing concerns over spectrum constraint after DTAC signed an agreement with TOT PLC on the 2.3 gigahertz (GHz) spectrum.

It also reflects DTAC’s financial strength, backed by strong cash flow generation and sufficient liquidity. The rating is partly enhanced by the support DTAC receives from Telenor ASA.

The rating also takes into consideration DTAC’s challenging business position from intense competition in the industry and the potential deterioration of its financial profile due to the hefty capital expenditure required to ensure bandwidth capacity and network quality.

Meanwhile, TRIS Rating affirms the company rating of DTACTriNet Co Ltd (DTN) and the ratings of DTN’s senior unsecured debentures at “AA+” with a “negative” outlook.

The ratings reflect DTN’s strategic importance as a core subsidiary of Total, a leading mobile phone service provider in Thailand. They are partly enhanced by the support from Telenor ASA, DTAC’s major shareholder.

The ratings take into consideration DTN’s market position as a leading mobile phone service provider and the growth prospects for data services.