S&P: Vivendi view now stable

Standard & Poor's said it revised its outlook to stable from negative on Vivendi SA and affirmed the group's BBB and A-2 long- and short-term corporate credit ratings, respectively.

Vivendi has agreed to sell its French fixed line and mobile operator SFR to cable operator Numericable and its ultimate owner Altice SA for a total value of about €17 billion, including €13.5 billion in cash.

The outlook revision reflects S&P's expectation that Vivendi's business risk profile will remain satisfactory, despite a loss of asset diversity and a dilutive impact on the group's business risk profile resulting from the SFR disposal.

Furthermore, as S&P said that as it expects the group to be in a net cash position upon completion of the disposals, S&P believes the somewhat weaker business risk profile could be offset by significant debt reduction and a stronger financial risk profile, despite uncertainty on potential returns to shareholders linked to the disposals.

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