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- Release Date: 19/12/13 18:49
- Summary: CREDIT: VCT: New global rating criteria impacts Vector
- Price Sensitive: No
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VCT
19/12/2013 16:49
CREDIT
REL: 1649 HRS Vector Limited
CREDIT: VCT: New global rating criteria impacts Vector
Following advice to the market in November that Vector had been placed on
credit watch negative, ratings agency Standard and Poor's has today confirmed
it has lowered its long term corporate credit rating on Vector from BBB+ to
BBB.
The revised rating is a result of a change to their international rating
methodology and their concerns about New Zealand's regulatory regime.
Vector Chief Executive Simon Mackenzie said Standard and Poor's have advised
the reason for the change is due to their assessment of the regulatory regime
in New Zealand.
"To give an example of the significance of the changes, in future a BBB+
rating requires FFO to Debt to be maintained at or above 15%, a 50% increase
on the previous criteria.
"Their assessment is that the New Zealand regime is less stable than other
regimes internationally and they see it as a higher risk.
"The Government's recent announcement that it intends to review regulatory
arrangements under the Commerce Act, together with the Productivity
Commission's work around regulatory best practice, is both timely and
welcome," he said.
Mr Mackenzie said the rating change will not have any immediate financial or
customer impact given the long dated duration of the company's debt
portfolio.
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End CA:00245457 For:VCT Type:CREDIT Time:2013-12-19 16:49:44
