On Aug. 15, 2007, Standard&Poor's Ratings Services affirmed its 'A/A-1' corporate credit ratings on Telecom Corp. of New Zealand Ltd. (TCNZ), noting TCNZ's demonstrated commitment to a conservative financial risk appetite as it manages the significant challenges facing the company and the telecommunications industry. The outlook is stable. The ratings on TCNZ reflect the company's very strong domestic market positions; the growing underlying demand for reliable telecommunications; TCNZ's strong free operating cash flow; and the company's commitment to a moderately conservative financial profile. These strengths are offset by the competitive market for modern applications; technology and infrastructure risks; and an adverse domestic regulatory environment. The ratings on TCNZ are principally underpinned by TCNZ's very strong domestic market position
