Strong market position as owner of the dominant fixed-line telecommunications access network in New Zealand High capital barriers to competition Strong operating cash flow generation Regulatory risks associated with the pricing of network services Network volume risks associated with fixed-to-mobile substitution Execution and cost risks associated with the Ultra-Fast Broadband (UFB) Fibre-to-the-Home (FTTH) rollout The 'BBB' rating on Chorus Ltd. reflects our view of the company's "strong" business risk profile, underpinned by its ownership of the dominant fixed-line telecommunications access network in New Zealand, high capital barriers to competition, and strong operating cash flow generation. Tempering these strengths are the regulatory risks associated with the pricing of Chorus' network services; the company's "significant" financial risk profile; network volume risks associated
