Major market positions in fixed-line and mobile telecommunications in New Zealand Intensifying competition in key services and products Reliance on cost cutting to maintain near-term profitability in the face of structural decline of legacy fixed-line revenue Execution risks associated with new products and technologies Robust credit metrics from low debt levels mitigating incrementally declining earnings Cash flow generation expected to generally cover capital expenditure requirements The outlook is stable. We expect Spark New Zealand Ltd.'s robust financial risk profile, large market shares, and prudent capital management to mitigate the group's exposure to structurally declining fixed-line revenues and intensifying competition, such that its credit metrics will remain in line with the 'A-' rating level. Downward rating momentum could emerge if pressures
