Fitch rates Vivendi Universal

Fitch Ratings said it assigned Vivendi Universal SA a senior unsecured BBB- rating with a stable outlook.

Fitch said the rating reflects the significant dividend flows from Vivendi's telecommunications businesses - SFR/Cegetel and Maroc Telecom. The rating is further underpinned by SFR's particularly strong operational performance and captures Vivendi's plan to increase its stake in Maroc Telecom to 51% from 35%.

It also reflects VU's success at overcoming its liquidity concerns through strong management execution of its asset disposals and operational focus on cash flow generation.

The rating considers the completion of the sale of Vivendi Universal Entertainment to NBC, a part of GE, following both U.S. and E.U. regulatory approval. Vivendi Universal Entertainment shareholders retain a 20% share in the new entity - NBC Universal. The Vivendi share is 18.5%, which it may monetize in agreed amounts from 2006.

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