S&P lowers Vectren

S&P said it lowered the issuer credit rating on Vectren Corp. to BBB+ from A- and removed the rating from CreditWatch, where they were placed with negative implications in April 2018.

The outlook is stable.

CenterPoint Energy Inc. completed its $8.5 billion acquisition of Vectren after receiving regulatory approvals in Indiana and Ohio, S&P said.

The agency also said it lowered the issuer credit ratings on Vectren's subsidiaries, Vectren Utility Holdings Inc., Indiana Gas Co. Inc. and Southern Indiana Gas & Electric Co. to BBB+ from A-.

The ratings also were removed from CreditWatch. The outlook on each entity is stable.

S&P also said it lowered the ratings on Vectren Utility and Indiana Gas's senior unsecured notes to BBB+ from A-.

The stable outlook reflects the outlook on the new parent, CenterPoint Energy Inc., the agency said.

The downgrades consider an expectation that all four entities are highly unlikely to be sold and have a strong long-term commitment from CenterPoint's senior management, S&P said.

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