Vivendi Environnement, the French environmental services company, may lose its investment-grade rating if it does not resolve doubts over a cross-default clause in an equity-linked bond guaranteed by Vivendi Universal, the media conglomerate.

Both Moody's Investors Service and Standard & Poor's (S&P) downgraded Vivendi Universal, which owns a controlling stake in Vivendi Environnement, to a high-yield rating of B1/B+ on Wednesday, maintaining a negative watch on the ratings.