UMG's Parent Company Has Debt Rating Lowered By Fitch
June 27, 2012 at 3:55 AM (PT)
VIVENDI SA, the parent company of UNIVERSAL MUSIC GROUP, may have its debt rating lowered "unless the French media and telecommunications company shows it can reduce its liabilities," FITCH RATINGS said today. BLOOMBERG reports, "FITCH, confirming its BBB rating -- the second-lowest investment grade -- and a stable outlook, said in a statement today the rating 'would come under pressure' if there was no clear expectation of the PARIS-based company's ratio of adjusted net debt to earnings staying below 2.5 times in the 'medium' term. The ratio was 2.3 times at the end of MARCH."
Since APRIL, analysts at FITCH, STANDARD & POOR'S and MOODY'S INVESTORS SERVICE have written notes about VIVENDI's limited debt headroom, citing the UNIVERSAL MUSIC GROUP division's acquisition of parts of EMI GROUP" as one of the moves they're following closely.
REUTERS notes shareholders want CEO JEAN-BERNARD LEVY, "more than seven years at the helm, to come up with a strategy to revive a stock that is trading near its lowest level in nine years. VIVENDI failed to shed light on its plan after a meeting of top executives last weekend. LEVY, 57, told a private gathering of investors in LONDON YESTERDAY he would focus on cutting costs at the French wireless unit SFR, people with knowledge of the matter said."