MELBOURNE (Standard & Poor's) Aug. 5, 2005--Standard & Poor's Ratings Services said today that Telecom Corp. of New Zealand Ltd.'s (TCNZ; A/Stable/A-1) solid financial performance and further deleveraging in a very competitive environment reflect TCNZ's strong business profile and commitment to conservative financial policies. The company's announced NZ$400 million special dividend by TCNZ can be accommodated within the existing rating and has no immediate effect on the stable outlook. The preliminary results for the financial year ended June 30, 2005, illustrate the strong underlying demand for new and existing telecommunications services, and TCNZ's very strong market position, which allows it to capitalize on this demand. Demand growth was offset partly by competitive and cost pressures, as well as the change
