Revised Global Ratings Criteria & Methodology impacts Vector

Revised Global Ratings Criteria and Methodology impacts Vector

Rating agency Standard and Poor’s have advised Vector that they have changed their international rating methodology. As a result of the revised criteria, Vector is being placed on a credit watch negative along with a number of other companies in the Asia Pacific region.

Vector Chief Executive Simon Mackenzie said Standard and Poor’s have advised the reason for their change is due to their assessment of the regulatory regime in New Zealand.

“Their assessment is that the regime is less stable than other regimes internationally and they see it as a higher risk”.

Mr Mackenzie said at this stage Vector does not believe this change has any immediate financial or customer impact given the long dated duration of the company’s debt portfolios.

“Vector continues to work with the Government and other agencies to establish a more mature and stable regulatory regime.

“Vector invests hundreds of millions of dollars in infrastructure across New Zealand and in Auckland and hopes that this decision by Standard and Poor’s will provide the catalyst for change in regulatory outcomes for all regulated entities,” he said.

ENDS

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