S&P cuts True to B+

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

The outlook is negative.

The downgrade and negative outlook reflect the group's weaker credit profile due to low earnings visibility and the risk of higher regulatory costs related to the pending interconnection settlement and access charges of its cellular subsidiary, True Move Co. Ltd. (B+ with negative outlook), S&P said.

The ratings reflect the company's high leverage position and weak cash flow protection measures, the highly competitive environment and regulatory uncertainties, the agency said.

These risks are offset by the company's strong position in the domestic fixed-line, broadband and pay-TV markets, its growing presence in the cellular market and the diversified services it provides, S&P added.

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