How True Corporation’s Rating Sets the Stage to drive the Telecom-Tech Company’s Ambitions
In March 2023, True Corporation and Total Access Communication successfully amalgamated into a new company and announced its intention to become Thailand’s No. 1 telecom-tech company. Upon the completion of the amalgamation, True Corporation’s company credit rating was assigned A+ by TRIS Rating. True Blog spoke to Mr. Nakul Sehgal and Ms. Yupa Leewongcharoen, Co-Chief Financial Officers of True Corporation, to explore the implications of an improved credit rating on the company's future trajectory and how it sets the stage to achieve the ambitions to become a telecom-tech company. A+ for the New Company The primary purpose of credit ratings for companies is to assess the likelihood of a company defaulting on its debts and its ability to repay them within the confines of the agreement. Credit ratings provide an evaluation of the creditworthiness and financial stability of a company, aiding investors and creditors in making informed decisions regarding lending, investment, and business partnerships. “A higher credit rating enables a company to obtain loans and financing options at more favorable interest rates, leading to reduced borrowing costs and improved financial flexibility over time,” Mr. Nakul explained. “Similar for individuals, a higher credit rating increases their likelihood of accessing loans or…