Telecom has been put on Creditwatch over its plans to split it operations.
Ratings agency Standard & Poor's said today it had placed the telco, its related entites and debt issues on Creditwatch with negative implications.
Telecom announced on Monday it had submitted a proposal to Crown Fibre Holdings to separate the company's fixed line assess network from its remaining businesses.
In May Standard & Poor downgraded its long-term outlook for Telecom from stable to negative.
While it affirmed its A long-term and A-1 short-term corporate credit ratings, analyst Paul Draffin said S&P considered Telecom's vertically integrated business model a key driver of the group's business risk profile.
Telecom chief financial officer Russ Houlden said the company was committed to seeing it maintain its single A credit ratings.
"We believe that Telecom's proposal to Crown Fibre Holdings aligns the interests and incentives of Telecom, its shareholders, the Government and New Zealanders."
- NZ HERALD
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