This report does not constitute a rating action MELBOURNE (S&P Global Ratings) Aug. 23, 2024-- Spark New Zealand Ltd. 's weaker-than-expected earnings and higher debt levels further squeeze our ratings on the company. The telecom operator's execution on proposed capital management initiatives and cost-reduction plans are key to ratings stability. Our rating on Spark (A-/Stable/A-2) incorporates our expectation that the company's prompt action will see credit metrics revert to appropriate levels for the rating by the end of fiscal 2025, despite deteriorating operating conditions. The company's adjusted debt-to-EBITDA ratio sits at about 2x compared with our downward ratings threshold of about 1.7x. The company's announced capital-management initiatives should support credit quality. These measures may include potential hybrid capital issuance as
