October 02, 2024 15:43 GMT
COMMUNICATIONS: Moody’s Places Vivendi On Rating Watch Negative
COMMUNICATIONS
Baa2
Reminder that the split will see the redemption of their bonds so the downgrade is not a credit negative development. EUR 28s trading 55c richer today with all bonds now within a few pts of par.
- Moody's placed Vivendi’s Baa2 ratings on review for downgrade after last week signing the EUR 2bn bridge deal to fund its split project.
- Liquidity weakened due to the required cancellation of EUR 1.5bn syndicated and EUR 800mn bilateral credit facilities.
- Post-split, Moddy’s note the weaking of Vivendi's business profile as they will rely mostly on dividends from the likes of UMG (EUR 4.3bn value, ~60% of total assets).
- Review focuses on liquidity, post-split business model, and governance. Downgrade potential of 1-2 notches depending on credit metrics post-split.
Keep reading...Show less
119 words