Fitch affirms Vivendi

Fitch Ratings said it affirmed Vivendi Universal SA's senior unsecured rating at BBB with a stable outlook.

The rating continues to be underpinned by Vivendi's significant dividend flows from its telecommunications businesses as well as from its 18.5% stake in NBC Universal, Fitch said.

The rating, however, does not capture any further material acquisition activity or adverse litigation outcome, which Fitch considers as event risk, the agency added.

The stable outlook incorporates Fitch's expectation that Vivendi will continue with its moderate financial policy and operational strengthening at the various business units, the latter of which should translate into stronger cash flows for Vivendi, the agency reported.

The relative stability of the telecommunication businesses stability provides a counter to the more cyclical media businesses. Fitch continues to focus upon cash flow generation of the business units and cash circulation within the group as a key component of its rating, said Fitch.

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