Fitch: Telstra unchanged

Fitch Ratings said that the release of a separation framework by the Department of Broadband, Communications and the Digital Economy on June 1 will have no immediate impact on Telstra Corp. Ltd.'s ratings (A/negative/F1).

The draft legislative framework aims to provide guidelines to assess the terms proposed by Telstra to separate its wholesale/network access business and its retail business units, the agency said. The draft legislation contains no adverse bearing on Telstra's negotiations with NBN Co.

Telstra's ratings have had a negative outlook since Feb. 25, 2010, reflecting the impact of the increased competitive challenges it will have to face after the potential disaggregation of its integrated telecommunications business model, the agency said.

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