Following its first-half results reporting on Thursday, Moody's advised Telstra's result was generally in line with its expectations. Pertinently, it reminded that the 'A2/P-1' long- and short-term credit ratings remain on review for possible downgrade due to concerns over the government's proposed regulatory reforms. Furthermore, an increase in the rate of loss of revenues on its legacy copper network poses additional challenges for the ratings, should these trends accelerate.Telstra still has almost A$2.4 billion of bonds outstanding in the domestic market, with maturities ranging from next month to December 2016. Telstra also has NZ$255 million of bonds outstanding in New Zealand with November 2011 and 2014 maturities. Strong asset performance over the life of the transaction and increases in subordination as a percentage of outstanding balance for each class of notes have allowed S&P to upgrade four subordinated tranches of notes issued by SMART Series 2007-2 Trust. The bonds fund car loans and leases originated by Macquarie Bank.S&P ratings on the SMART Class B, C, D, and E notes were increased to 'AA', 'A', 'BBB' and 'BB' from 'A', 'BBB', 'BB' and 'B', respectively. The 'AAA' ratings assigned to the Class A-2 notes were affirmed.S&P noted that to date, cumulative net losses are equal to 0.55 per cent of the original receivables balance and have been absorbed by excess spread; there is currently no charge-offs to the notes. The proportion of loans in arrears remains low, with loans in arrears greater than 30 days totalling 0.37 per cent of the current receivables balance. The portfolio is well seasoned; 79 per cent of the underlying receivables have paid down and the weighted average term to maturity of the remaining receivables is 14 months.