Chorus outlook shifts to positive, plans debt refinancing and tender offer

Chorus Limited's S&P Global Ratings credit outlook has been revised to 'BBB positive' from 'BBB stable'. This reflects stronger creditworthiness under new digital infrastructure rating criteria. The shift to a Funds From Operations (FFO)-to-debt ratio as the primary metric, with a downside trigger of FFO-to-debt below 9%, allows for higher leverage at the current rating level.

In parallel, Chorus is preparing for a new EMTN debt investor roadshow commencing November 13, 2025, with a potential Euro denominated 7-year fixed rate benchmark transaction to follow. This is supported by their EMTN Programme dated October 31, 2025. Additionally, Chorus has launched an Any & All Tender Offer for its outstanding €300m 0.875% Notes due December 5, 2026, with Citi, HSBC, and MUFG acting as joint lead and dealer managers.

The company's robust business risk profile, stemming from its near monopoly in New Zealand's fixed-line telecommunications wholesale access network and regulated cash flow, underpins the positive outlook. Strong fibre uptake and prudent capital management are expected to support a potential 'BBB+' long-term rating within the next 12 months, contingent on maintaining an FFO-to-debt ratio above 13%.