Vivendi Debt Rating Is Reduced by S
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After a recent rating cut by Moody’s, the short-term credit rating of Vivendi Universal was cut one notch by Standard & Poor’s on concern that a tumbling share price will trigger payments and derail the No. 2 media company’s debt-cutting plans.
S&P; lowered Vivendi’s short-term rating to A-3 from A-2, and changed its outlook to negative from stable. The credit service affirmed Vivendi’s long-term BBB rating, two notches above junk status.
Vivendi shares fell for a 10th straight day, dropping to a 4 1/2-year low, as investors question the strategy of Chief Executive Jean-Marie Messier and fret about liabilities that didn’t appear on the financial statements.
The shares fell 81 cents, or 1.7%, to $28.26 on the New York Stock Exchange.
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