Strong market position as owner of the dominant fixed-line telecommunications access network in New Zealand High capital barriers to competition Regulatory risks associated with the pricing of network services Network volume risks associated with fixed-to-mobile substitution Cost escalation risks associated with the Ultra-Fast Broadband (UFB) fiber-to-the-home (FTTH) rollout Financial policy framework that is supportive of the 'BBB' rating The stable outlook reflects our expectation that Chorus' strong network position and prudent approach to capital management will offset risks at the 'BBB' rating level associated with future regulatory pricing decisions, the group's large and complex FTTH capital-expenditure program, and revenue risks associated with fixed-to-mobile substitution. Downward rating pressure could occur if adverse regulatory pricing decisions or material additional costs in the
