Summary: Vector Ltd. Feb 13
- ID: 2419459
- February 2013
- Standard & Poors
The 'BBB+' rating on New Zealand energy network company Vector Ltd. primarily reflects our view of the group's "strong" business risk profile and its "significant" financial risk profile. Underpinning the strong business risk profile are: what we consider to be natural-monopoly positions in Vector's regulated electricity-distribution and gas-transmission and -distribution businesses; the company's reasonable cash-flow certainty; and its relatively low operational risk. The scale and a degree of diversity in Vector's operations, and its focus primarily on the Auckland market, also support the strong business profile. Offsetting these strengths to some degree are uncertainties surrounding the regulatory framework, and the company's exposure to what we consider to be relatively more volatile unregulated businesses, including wholesale gas earnings. Vector is New...
Companies mentioned in this report are:
- Vector Ltd.
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