Fitch affirms Vivendi

Fitch Ratings said it affirmed Vivendi SA's long-term issuer default rating at BBB and its senior unsecured rating at BBB.

The outlook is stable.

The action follows news that a letter of intent has been signed between Vivendi's subsidiary, SFR, and Louis Dreyfus, to acquire the 29.5% it owns in SFR's 40.5% associate, Neuf Cegetel.

Convergence of fixed line and mobile and the increasing need for distribution businesses to differentiate themselves through content deals, makes the logic for this deal compelling, Fitch said.

Vivendi's shareholder loan should allow it to retain leverage levels commensurate with a BBB level, the agency said, though following this and the recent Activision deal, its headroom is severely reduced.

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