Significant market positions in fixed-line and mobile telecommunications in New Zealand Intensifying competitive environment in fixed and mobile services Structurally declining legacy fixed-line revenues Execution risks associated with new products, technologies, and cost-reduction initiatives Modest financial risk profile and conservative financial policies Strong free cash flow generation, tempered by near-term restructuring costs and capital expenditure requirements The outlook is stable. We expect that Telecom Corp of New Zealand Ltd.'s (TCNZ) "modest" financial risk profile, large market shares, and prudent capital management will mitigate the group's exposure to structurally declining fixed-line revenues and intensifying competition. Downward rating pressure could emerge if market share or margin pressure, or debt-funded investment sustained fully adjusted debt to EBITDA at the high 1x level or
