MELBOURNE (Standard & Poor's) June 28, 2006--Standard & Poor's Ratings Services today affirmed its 'A/Stable/A-1' corporate credit ratings on Telecom Corp. of New Zealand Ltd. (TCNZ), even though the telecommunications company is facing significant challenges. "In the near-to-medium term, TCNZ remains in control of its cash flow and balance sheet. This control and its commitment to conservative financial policies mitigate much of the company's exposure to the current period of considerable industry change, pressure on margins, and consequential pressure on credit protection," credit analyst Colin Atkin, Corporate & Infrastructure Finance Ratings group, said. "Nevertheless, the long-term evolution of the company's cash flow mix, increased regulatory intervention, and the implementation and life-cycle risks associated with new technologies to support next-generation consumer
