S&P ups Vector view to stable

Standard & Poor's said it affirmed its BBB+ long-term corporate credit rating on Vector Ltd., and revised its outlook to stable from negative as risks and uncertainties abate surrounding both the integration of the NGC Holdings Ltd. gas business and the regulatory environment.

Vector has successfully integrated the NGC business, as evidenced by the realization of expected synergies, S&P said. These synergies should flow through to an improvement in Vector's financial metrics in the medium term.

The ratings reflect the cash flow certainty of its electricity business, leading market positions in the regulated electricity-distribution and gas-transmission and distribution businesses and the low-operational risk of these businesses, the agency said.

These strengths are offset by the limited headroom in the company's financial profile for the current rating and uncertainties surrounding the medium-term regulatory outlook and long-term gas supply in New Zealand, S&P added.

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