TOKYO (Standard&Poor's) May 25, 2004--Standard&Poor's Ratings Services today assigned its 'AA-' rating to Nippon Telegraph&Telephone Corp. (NTT: AA-/Stable/A-1+) Eur500 million 4.125% series 2 euro bonds due 2011. The rating on NTT reflects the NTT group's strong operating base in both the fixed-line and mobile markets and its ability to maintain stable cash flow despite deteriorating profitability in its traditional local fixed-line business. NTT has very strong financial flexibility. The company is a major issuer in the Japanese bond market and has good access to bank loans, enjoying better spreads than other Japanese companies. Most of NTT's debt is denominated in Japanese yen, of which about half is from banks. However, refinancing risk is limited,
