S&P Global upgrades AIS rating outlook
S&P Global Ratings on Monday revised its rating outlook on Advanced Info Service (AIS) to stable from negative.
At the same time, S&P affirmed its “BBB+” long-term issuer credit rating on the listed telecommunications company.
The outlook revision reflects S&P’s belief that AIS is likely to maintain a capital structure where its debt-to-EBITDA (earnings before interest, tax, depreciation and appreciation) ratio will not exceed 2.5x and, if so, not for a prolonged period.
While AIS’s revenues and earnings in the first half of this year were broadly in line with the ratings firm’s expectations, the company has curtailed capital spending for equipment and limited its recent spectrum purchase to one 5-megahertz slot in the Thai government’s auction last month.
As such, S&P now expects the company to generate and sustain credit measures that are commensurate with its ratings.
