Global credit ratings agency Moody’s has downgraded Telecom from stable to negative.
The downgrade comes in the wake of plans to structurally separate Chorus from the rest of Telecom.
Telecom has posted a statement on the NZX announcing the downgrade.
Despite the downgrade, which relates to Telecom's long- and short-term debt, Telecom's share price surged yesterday to its highest level in 16 months, on news it had won much of the UFB contract.
As of 1.05pm, the share price was $2.545.