TOKYO (Standard&Poor's CreditWire) July 21, 2000--The double-'A'-plus long-term rating on Nippon Telegraph&Telephone Corp. (NTT) remains on CreditWatch, where it was placed on May 8, 2000 after the company agreed to purchase Internet services provider Verio Inc. The recent agreement between the U.S. and Japanese governments providing for a cut in the NTT group's interconnection charges is not expected, by itself, to influence the resolution of the company's placement on CreditWatch. In Standard&Poor's view, the deal to lower the fees NTT charges other companies to connect to its local telephone network by about 20% over two years will not significantly damage NTT's consolidated profitability. Increased traffic on the network should offset the impact of the
