Vivendi: S&P places ratings on negative watch
(CercleFinance.com) - Standard & Poor's said on Monday that it has placed Vivendi's ratings under review, with a negative stance, due to the proposed split of its subsidiary Universal Music Group (UMG).
Vivendi said last week that it will make an exceptional distribution of 60% of UMG's capital to its shareholders.
The rating agency believes that the transaction will considerably weaken the media group's risk profile, whose business will now depend on businesses with less hegemonic and less dynamic profiles than UMG, including Canal+, Havas, Editis and Gameloft.
This decision notably concerns its long-term "BBB" rating, which could be downgraded by at least one notch if the current terms of the transaction are approved, S&P warns.
Vivendi's share price was down about 1% on Monday morning.
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Vivendi said last week that it will make an exceptional distribution of 60% of UMG's capital to its shareholders.
The rating agency believes that the transaction will considerably weaken the media group's risk profile, whose business will now depend on businesses with less hegemonic and less dynamic profiles than UMG, including Canal+, Havas, Editis and Gameloft.
This decision notably concerns its long-term "BBB" rating, which could be downgraded by at least one notch if the current terms of the transaction are approved, S&P warns.
Vivendi's share price was down about 1% on Monday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.