Vivendi: S&P downgrades outlook on rating
(CercleFinance.com) - S&P has downgraded its outlook for Vivendi's BBB rating to negative (from stable).
"Vivendi's business profile could weaken as it reduces its ownership of UMG if the proceeds are not reinvested in assets of equivalent quality," S&P said.
Universal Music Group (UMG) is its largest earnings contributor and fastest-growing business--over the next 18 months, the rating agency points out.
"We see a risk that the group's business profile could weaken, if the proceeds are not reinvested in assets that are of equivalent quality and have similar growth prospects," S&P adds.
The rating agency believes that the group's future indebtedness will depend primarily on its financial decisions regarding the allocation of cash between shareholder returns, debt reduction and acquisitions.
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"Vivendi's business profile could weaken as it reduces its ownership of UMG if the proceeds are not reinvested in assets of equivalent quality," S&P said.
Universal Music Group (UMG) is its largest earnings contributor and fastest-growing business--over the next 18 months, the rating agency points out.
"We see a risk that the group's business profile could weaken, if the proceeds are not reinvested in assets that are of equivalent quality and have similar growth prospects," S&P adds.
The rating agency believes that the group's future indebtedness will depend primarily on its financial decisions regarding the allocation of cash between shareholder returns, debt reduction and acquisitions.
Copyright (c) 2020 CercleFinance.com. All rights reserved.