Standard & Poor’s downgrades “Twitter” due to lack of information

Standard & Poor’s has announced it will pull its credit rating from Twitter, due to lack of sufficient information to continue covering the company’s social media by Elon Musk.

At the time of the rating withdrawal, Twitter and its debt were under credit scrutiny, indicating an impending rating action.

Twitter’s massive debt load of about $13 billion was financed directly by Morgan Stanley-led banks when Musk’s $44 billion takeover of the media giant social media has been shut down, Bloomberg reported.

Musk’s acquisition of Twitter fundamentally changed the company’s operations and products. Those changes included mass layoffs, feature changes, and a wide range of companies pulling large amounts of advertising from the platform.

The group of banks that financed the takeover now faces the challenge of putting in debt is common for investors, many of whom use credit rating agencies to determine the risks involved in buying credit.

Standard & Poor’s downgraded the company five grades to “B-” from “BB+” in early November due to high leverage following the acquisition.

The ratings firm “expected to obtain additional information on the final capital structure and any changes to the operating strategy,” according to a November update. However, the ratings firm said at the time that “it may not happen until the company’s new debt has been placed in common”.

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