Strong market position as owner of the dominant fixed-line telecommunications access network in New Zealand High capital barriers to competition Significant regulatory risks associated with the pricing of network services Network volume risks associated with fixed-to-mobile substitution Moderate financial policy framework, which is consistent with the 'BBB' rating Cost escalation risks associated with the Ultra-Fast Broadband (UFB) fiber-to-the-home (FTTH) rollout The stable outlook reflects our expectation that Chorus Ltd.'s strong network position, prudent capital structure, and balanced approach to capital management should offset risks at the 'BBB' rating associated with future regulatory pricing decisions, the group's large and complex FTTH capital-expenditure program, and revenue risks associated with fixed-to-mobile substitution. Upward ratings pressure has moderated in the past six months, in
