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Telecom's financial position has been affirmed by ratings agency, Moody's Investor Services.
After the company's full year results announcement on Friday, Moody's gave New Zealand's incumbent telco an A2 long term rating and P-1 short term rating.
Moody's senior analyst Ian Lewis said the profit results were in line with expectations.
"The rating affirmation considers the continued strength of TCNZ's business model, and the return of its financial metrics to levels more consistent with a single-A rating," Mr Lewis said.
"The company, however, remains exposed to regulatory challenges as the Government continues to encourage competition."
The Government is currently considering whether Telecom should be compelled to restructure, through operational separation.
"Moody's will continue to monitor developments in the regulatory environment and will assess the potential credit impact of any separation plan when more clarity emerges on the form the restructuring will assume," Mr Lewis said.
- NZPA
