MELBOURNE (Standard&Poor's) May 10, 2007--Telecom Corp. of New Zealand Ltd. (TCNZ; A/Stable/A-1) is not immune from the pressure being applied to the credit profiles of telecommunications players across the globe, according to an article published today by Standard&Poor's Ratings Services titled "Credit FAQ: Telecom New Zealand Faces Significant Challenges, But Ratings Remain StableûFor Now". The article discusses issues confronting TCNZ, including: regulatory changes; the potential for the sale of network assets; the announced NZ$1 billion capital return; the pending announcement of a new CEO; leveraged buyout (LBO) risk; and the evolving markets. "Although the TCNZ rating outlook is stable for now, the company has a long list of issues that pose significant risks to its solid
