Ratings agency Standard and Poor's has released a statement saying it is continuing to place Telecom on negative credit watch, due to the pending spin-off of Chorus.
In the statement, Standard and Poor's credit analyst Paul Draffin says: "As we've said previously, we believe this demerger will weaken TCNZ's strong business risk profile
"If shareholders approve the demerger, it will likely result, all things being equal, in a lowering of the long-term rating on TCNZ by at least one notch. However, a rating outcome of 'A-' is possible for TCNZ if the group maintains an appropriately conservative capital structure and financial policies following the demerger."
The full text of the statement can be found here.