TOKYO (Standard&Poor's) May 24, 2011--Standard&Poor's Ratings Services today assigned its 'AA' rating to Nippon Telegraph&Telephone Corp.'s (NTT; AA/Stable/A-1+) ¥100 billion domestic bonds due March 19, 2021. The coupon rate is 1.21%. The ratings on NTT reflect the company's extremely strong position in Japan's fixed-line, mobile telecommunications, and broadband markets; the strong earnings and profitability in its mobile business, which has about a 50% market share; the significant advantages NTT has in broadband services compared with its peers, especially in its fiber-to-the-home (FTTH) business; and its strong financial profile--characterized by strong cash flow. The ratings are constrained by the risk that a significant improvement in earnings in its FTTH business will be delayed, due to
