TEXT-NZ's Telecom increased standby credit to NZ$800 mln

(The following statement was released by the company)

WELLINGTON, May 12 - Telecom New Zealand CFO Russ Houlden said today the company had signed a new NZ$800 million committed standby facility with its bankers.

The new NZ$800 million facility replaces the previous US$500 million facility and gives the company significantly more financial flexibility should Telecom New Zealand need this.

"The fact that, in the middle of a credit crisis, we can sign a facility which is bigger than before and on favourable terms shows the confidence the banking community has in Telecom's financial strength," Mr Houlden said.

"We are fortunate that we do have a strong balance sheet and our liquidity position should remain strong at a time when others may struggle to cope with the effects of the credit crisis."

Mr Houlden said that shareholders, credit rating agencies and bondholders would be pleased that Telecom had increased the facility limit.