S&P: Vivendi unaffected

Standard & Poor's said its ratings and outlook on Vivendi Universal SA (BBB-/positive/A-3) were not affected following the group's announcement that it has sold 15.0% of its 20.3% stake in Veolia Environnement SA.

S&P said the cash proceeds (about €1.5 billion) will result in further debt reduction for Vivendi, which is now expected to reach a ratio of funds from operations (including dividends received) to net adjusted debt of close to 40%, which would be materially higher from past levels.

Operating performance at Vivendi's music and pay-TV operations, the execution of other expected asset disposals and the evolution of certain contingent liabilities will now be the key determinant of Vivendi's future credit quality, according to S&P.

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