S&P changes Vectren to negative

S&P said it revised its outlooks on Vectren Corp. and subsidiaries Vectren Utility Holdings Inc., Southern Indiana Gas & Electric Co. and Indiana Gas Co. Inc. to negative from stable.

At the same time, the agency affirmed the ratings on the entities, including the A- issuer credit ratings.

S&P affirmed the A-2 short-term rating on Vectren Utility and affirmed the A- rating on its senior unsecured debt, the A- rating on Indiana Gas’ senior unsecured debt and the A rating on Southern Indiana Gas' first-mortgage bonds. The recovery rating remains 1+.

The agency said the revision is based on the company's revised capital spending plan that, if financed with higher debt leverage and combined with the negative effect of federal tax reform, could weaken Vectren's financial measures to about 21% funds from operations to debt.

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