Telecom Corp. of New Zealand is proposing to demerge its fixed-line access network business, Chorus Ltd., in late 2011. We have assigned a preliminary long-term issuer credit rating of 'BBB' to Chorus Ltd., with a stable rating outlook. In our view, Chorus has strong market position, high capital barriers to competition, and strong operating cash flow. We expect to finalize the Chorus rating on completion of the demerger. On Aug. 31, 2011, Standard&Poor's Ratings Services assigned its 'BBB' preliminary long-term issuer credit rating to New Zealand-based telecommunications company Chorus Ltd. (Chorus). The outlook on the rating is stable. Chorus is the access network business of Telecom Corp. of New Zealand Ltd. (TCNZ; A/Watch Neg/A-1), which is planning to
