Moody’s update on Chorus

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington
New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

5 August 2019


Moody’s update on Chorus

Moody's Investors Service has released the attached update on Chorus.

The long term rating remains unchanged at Baa2 (outlook stable).

The update states that Moody’s expects to revise Chorus’ current financial
leverage tolerance threshold in 2021, following the Commerce Commission’s final
determination on the fibre price path for Chorus. This reflects Moody’s
expectation of declining UFB capital spending, reducing cash outflows and
execution risks to place Chorus’ risk profile more in line with other regulated
utilities.

Moody’s consider Vector the most comparable rated peer for Chorus, but note
that Chorus’ greater competition and technology risk suggest a tighter leverage
tolerance threshold.


ENDS


For further information:

Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: brett.jackson@chorus.co.nz

Nathan Beaumont
Stakeholder Communications Manager
Phone: +64 4 896 4352
Mobile: +64 (21) 243 8412
Email: Nathan.Beaumont@chorus.co.nz