S&P may cut Vivendi

Standard & Poor's said it placed on CreditWatch with negative implications the BBB long-term and A-2 short-term corporate credit ratings on Vivendi SA after its subsidiary SFR said it planned to acquire the 59.5% it does not own in telephony services provider Neuf Cegetel SA, representing a potential €4.5 billion cash outflow.

Although the acquisition would have significant strategic merits, the size and uncertainties of the funding would materially weaken Vivendi's debt measures, the agency said.

SFR plans to fund the deal primarily through a loan from Vivendi, which will in turn use net debt, but also could raise €1 billion to €2 billion of equity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.