S&P might downgrade Hubbell

S&P said it placed all of the ratings on Hubbell Inc. on CreditWatch with negative implications.

The agency said the CreditWatch negative placement follows Hubbell's announcement that it entered into a definitive agreement to acquire Aclara Technologies for $1.1 billion. Hubbell expects to close the transaction in the first quarter of 2018.

“We expect Hubbell to use a material amount of debt to finance the transaction such that its pro forma adjusted debt-to-EBITDA will increase well above 2x, which is our downside trigger for the current rating,” S&P said in a news release.

“The CreditWatch negative placement also incorporates the uncertainty around the company's financial policy given its increased use of debt, which deviates from our previous expectations.”

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