Moody's rates Vector bond Baa1

Moody's Investors Service said it assigned an Aaa with stable outlook rating to NZ$200 million bonds issued by Vector Ltd., along with a Baa1 senior unsecured rating, which reflect Vector's underlying credit quality without the guarantee provided by Ambac Assurance Corp. The outlook on this rating remains negative.

The outlook is stable.

The proceeds from the bonds will go towards the refinancing of existing senior debt.

The Baa1 rating reflects the company's low business risk and the solid cash flows generated from both its electricity and gas distribution networks, Moody's said.

At the same time, the rating considers Vector's relatively high leverage metrics, albeit this situation is comparable with most industry peers within Australia and New Zealand, the agency added.

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