S&P rates Telstra Group A-

S&P said it assigned an A- rating to Telstra Group Ltd., the new parent of ServeCo, InfraCo Fixed, Telstra International, and Amplitel HoldCo.

“The cross guarantee between the operating entities and the new parent entity mitigates potential subordination risks for prior debt issued by Telstra Corp. Accordingly, Telstra's group assets and cash flows will effectively remain available to support Telstra Corp.'s debt obligations. Following the restructure, Telstra Group Ltd. will become the primary borrowing entity for the group's external debt (including new issuance and refinancing of the existing debt held at Telstra Corp.),” S&P said in a press release.

The agency said it considers the restructuring neutral for credit metrics.

The outlook is stable.

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