S&P: Vivendi Universal unaffected

Standard & Poor's said its ratings and outlook on Télévision Française 1 SA (A/negative/A-1) and Vivendi Universal SA (BBB/stable/A-2) are unaffected by the announcement that the two groups are seeking an agreement in the field of pay-TV.

France is the only European country with two competing pay-TV satellite platforms: CanalSatellite, 66%-owned by Vivendi's Canal+ Group and 34% by Lagardère group, and TPS, 66%-owned by Télévision Française 1 and 34% by M6. This situation results in high programming and subscriber acquisition costs for both players, the agency said.

While no details of the negotiations are currently available, an enlarged satellite platform could benefit the two groups' credit profiles, provided Télévision Française 1 secures the continued distribution of its leading thematic channels and the transaction does not involve significant cash outflows in the medium term.

Vivendi's financial profile is currently solid for the rating, and S&P said it expects that any moderate cash outflow could be accommodated within the current rating.

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