S&P affirms Vivendi Universal

Standard & Poor's said it affirmed its BBB/A-2 corporate credit ratings on Vivendi Universal SA (VU), after the group announced an agreement with media and defense group Lagardère SCA (not rated) for the latter to swap its 34% stake in VU's satellite broadcasting platform, Canalsat, for a 20% stake in Canal + France, a newly-created entity.

The outlook is stable.

S&P said the ratings on VU continue to primarily reflect its 56% control of cash-generative SFR, France's second-largest mobile telephony operator its asset diversity and a moderate financial profile.

Lagardère will pay €525 million in cash upfront from to VU, which will have an immediate positive impact on the group, S&P added.

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