S&P ups Vivendi Universal

Standard & Poor's said it raised its corporate credit rating on Vivendi Universal Entertainment LLLP to BB+ from BB and its senior secured bank loan rating to BBB- from BB+. The ratings remain on CreditWatch with positive implications, where they were placed Sept. 3, 2003.

S&P said the upgrade follows completion on Wednesday of the merger plan announced in September under which Vivendi Universal SA (BB/Watch positive/B) agreed with General Electric Co. (AAA/stable/A-1+) to merge its approximately 86%-owned subsidiary VUE with GE's fully owned media subsidiary NBC to form one of the largest media groups worldwide, NBC Universal.

S&P currently expects that Vivendi Universal Entertainment's rated debt, which is being assumed by unrated NBC Universal and is not being guaranteed by GE, will be refinanced through unrated financings. S&P said it plans to withdraw its existing Vivendi Universal Entertainment ratings upon completion of the refinancing.

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