MELBOURNE (Standard & Poor's) March 22, 2005--Standard & Poor's Ratings Services today affirmed its 'A/A-1' corporate credit ratings on Telecom Corp. of New Zealand Ltd. (TCNZ) following a full review of TCNZ's performance, market fundamentals, and risk appetites. The outlook is stable. "TCNZ's rating affirmation reflects the benefits it accrues from long-standing customer relationships as the incumbent telecommunications provider. Its market position and strong free cash flow have given it the flexibility to deleverage over the past three years, providing it improved flexibility to meet the challenges of changing technology and increasing competition," said Standard & Poor's credit analyst Colin Atkin. "The company's commitment and ability to maintain conservative financial policies further underpins its strong credit ratings," he added. TCNZ
