S&P raises Vector ratings

S&P said it raised its ratings for Vector Ltd. and its senior unsecured debt to BBB+ from BBB and subordinated capital bonds to BBB- from BB+.

“Vector Ltd.'s business risk profile will strengthen with the divestiture of 50% of its unregulated metering business to a joint venture (JV) with Queensland Investment Corp. Ltd. (QIC, not rated),” the agency said in a press release.

S&P said it expects Vector to use the proceeds to help reduce its leverage and forecasts the company's ratio of funds from operations (FFO) to debt at 10%-11% in fiscal 2024, strengthening to above 13% after that.

The outlook is positive.

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