S&P downgrades Telecom NZ (ASX:TEL) credit rating
- 05 August, 2010 17:01
Credit rating agency Standard & Poor's has placed Telecom New Zealand (ASX:TEL) on creditwatch, and may lower its A/A-1 rating on the operator.
Standard & Poor's decided to place the company on creditwatch after it made the announcement that it has proposed to structurally separate as part of its bid to participate in New Zealand's Ultrafast Broadband (UFB) project.
But Telecom's CFO, Russ Houlden, defended the plan. “We believe Telecom's proposal to Crown Fibre Holdings aligns the interests and incentives of Telecom, its shareholders, the Government and New Zealanders,” he said.
He said Telecom remained committed to maintaining its credit ratings with booth Moody's and Standard and Poor's.