S&P: Vivendi, TF1 unaffected

Standard & Poor's said its ratings and outlook on Vivendi Universal SA (BBB-/positive/A-3) and Télévision Française 1 SA (A/stable/A-1) are unaffected by the acquisition by Vivendi's pay-TV subsidiary Canal Plus of the exclusive right to televise French first-division soccer for the next three seasons, outbidding TF1's 66%-owned satellite broadcaster TPS.

Although the transaction is expected to cost Canal Plus about €600 million annually, versus about €300 million previously, S&P said it is unlikely to affect the overall credit profiles of Vivendi Universal or TF1.

S&P said the exclusivity of the broadcasting rights strengthens Canal Plus' competitive position. Nevertheless, the company will have to substantially increase its subscriber base and average revenue per user to meet the more expensive programming costs.

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