TCNZ has confirmed that it is considering a potential structural separation of its copper access network in order to participate in the New Zealand government's 'Ultra Fast Broadband' fibre-to-the-home network. We consider TCNZ's copper access network to be a key driver of the group's strong business risk profile. Accordingly, we have revised the outlook on the TCNZ long-term rating to negative, from stable, reflecting our concern that if a structural separation proceeds, it is likely to lead to a lowering of the long- and short-term ratings on the group. Significant uncertainties, however, remain as to the ultimate outcomes, timing, and financial impact of such a transaction. On May 24, 2010, Standard&Poor's Ratings Services affirmed its 'A' long-term and
