S&P cuts Telecom's rating to "A-" with stable outlook
International ratings agency Standard & Poor's has cut Telecom's credit rating to "A-" from "A" with a stable outlook following final court orders permitting it to spin off its network business Chorus into a separate company.
Monday, November 14th 2011, 10:46AM
by Jenny Ruth
S&P foreshadowed the likely cut back in August. All Telecom's $541.7 million of NZX-listed retail bonds, whose maturities range from March 2013 to March 2016, have remained with Telecom.
The split will be completed on November 30.
S&P says the downgrade reflects Telecom's "reduced revenue diversity and loss of high-credit-quality access network revenues due to the demerger." It says tempering the loss of network revenues is Telecom's "adoption of a more conservative financial policy framework."
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