Fitch affirms DTAC rating, saying outlook is stable
Fitch Ratings has affirmed Thailand-based telecommunications company Total Access Communication Public Company Limited’s (DTAC) long-term foreign- and local-currency issuer default rating (IDR) at BBB, with a stable outlook. The agency has also affirmed its national long-term rating at AA (tha) with stable outlook, and national short-term rating at F1+ (tha).
Fitch believes that DTAC will need more spectrum over the next two years to replace the 35MHz spectrum that is part of the 2G concession expiring in 2018. This is on top of the 2.3GHz spectrum that DTAC will have access to under a partnership with TOT.
DTAC is likely to participate in the 1.8 GHz and 850 MHz spectrum auctions, which are likely to take place next year, as the company still relies on these frequencies to provide 3G and 4G services.
Fitch expects the starting prices of the auctions to be high, probably similar to the final prices in the 1.8 GHz and 900 MHz auctions held in 2015 and 2016.
