Telecom Disappointed At Rating Change
Telecom Corporation of New Zealand is disappointed at the decision of Standard & Poor’s to change Telecom’s long–term corporate credit rating to A with a stable outlook, from A+.
Chief Financial Officer Marko Bogoievski said today that since its acquisition of AAPT in Australia, Telecom had taken major steps to enhance its financial profile.
“We disagree with the Standard & Poor’s view,” Mr Bogoievski said. “Telecom has strong operating cash flows in New Zealand and we’re satisfied with our progress in the Australian business.”
Mr Bogoievski noted that the Standard & Poor’s decision was in contrast to the Moody’s Investors Service announcement last week confirming its rating on Telecom senior unsecured debt at A1, which is equivalent to Standard & Poor's A+ rating.