Fitch affirms Vivendi

Fitch Ratings said it affirmed Vivendi SA's long-term issuer default rating and senior unsecured rating at BBB following an agreement with Vodafone to acquire the remaining 44% stake in Societe Francaise du Radiotelephone SA that it does not already own.

The outlook is stable.

Under the terms of the agreement, which is expected to be completed before the first half of 2011, Vivendi will acquire 100% ownership of Societe Francaise du Radiotelephone and therefore benefit from full cash circulation and tax consolidation, Fitch said.

Vivendi's structurally adjusted net debt-to-EBITDA ratio could end up slightly less than 2.5x by the end of the year, the agency said.

Fitch said it believes this level of leverage, combined with the enhanced business mix, provides a measure of headroom at the current rating level.

The ratings also recognize Vivendi's scale and diversity, the agency said.

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