Fitch ups Vivendi to positive

Fitch Ratings said it revised Vivendi Universal SA's outlook to positive from stable. The senior unsecured debt rating is affirmed at BBB.

The new outlook reflects evidence of positive and sustainable operating improvements in Vivendi's core media activities, Universal Music Group and Canal +, continued strong performance from the group's telecoms assets and its conservative financial profile, the agency said.

Fitch had previously pointed to weakness from the group's core media assets as constraining the group's rating, and evidence of continued strong performance at UMG and Canal+ will remove this constraint.

The recently announced proposed merger of Canal+'s operations with those of TPS, if cleared by the competition authorities, is likely to be a positive rating factor in the medium term as it should allow significant scope for margin improvement in the combined entity, Fitch said.

Vivendi's ratings reflect the group's high degree of business, geographical diversification and reliable dividend streams from subsidiaries SFR (A-/stable), Maroc Telecom and its 18.5% stake in NBC Universal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.