Fitch: Pressures on Vivendi

Fitch Ratings said that Vivendi SA's headroom in its credit profile is still limited because of the recent EMI acquisition expected to close later this year and the competitive pressure facing SFR, Vivendi's French telecoms subsidiary.

This is despite a better than expected cash-generation performance in the fourth quarter of 2011 and news of a cut in the cash dividend to be paid in 2012, Fitch said.

Management has shown it is committed to maintaining Vivendi's rating with the change in dividend policy, which partly offsets the downward pressure on SFR's profitability, the agency said.

But, headroom is still limited with Vivendi's structurally adjusted net debt-to-EBITDA ratio likely to remain above the key 2.5x level even 12 to 18 months after the closing of the EMI transaction, Fitch said.

© 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.