CREDIT: TEL: S&P Puts Telecom On Negative Outlook

24 May 2010 5:03 pm

TEL 24/05/2010 CREDIT

REL: 1703 HRS Telecom Corporation of New Zealand Limited (NS)

CREDIT: TEL: S&P Puts Telecom On Negative Outlook

MEDIA RELEASE

May 24, 2010

S&P PUTS TELECOM ON NEGATIVE OUTLOOK

Standard & Poor's Ratings Services has affirmed its 'A' long-term and 'A-1' short-term corporate credit ratings on Telecom Corp. of New Zealand Ltd. (TCNZ). At the same time, it revised the outlook on the long-term rating on TCNZ to negative, from stable.

The outlook revision follows TCNZ's recent confirmation that it is considering a structural separation of its access network from its remaining businesses in order to participate in the New Zealand government's proposed 'Ultra Fast Broadband' fibre-to-the-home network.

Russ Houlden, CFO, Telecom, said: "We remain committed to Telecom maintaining single A credit ratings with both Moody's and Standard & Poor's."

- ENDS -

For more information:

Ian Bonnar, Telecom Media Relations 027 215 7564 End CA:00195260 For:TEL Type:CREDIT Time:2010-05-24:17:03:33

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