Fitch Ratings Downgrades WeWork

October 24, 2020
Share this Post: 

WeWork has been dealt another blow with Fitch Ratings downgrading the company and warning that the co-working startup could default on its obligations, according to a report by Fight Ratings

WeWork Companies LLC and The We Company’s LT IDR has been officially downgraded from CCC+ to CCC and WeWork LLC’s Senior Unsecured Notes issue rating has dropped from CCC/RR5 to CC/RR6.

This spells more bad news for the flexible office space aggregator as it indicates a ‘substantial credit risk’ to investors and that the company defaulting is a very real possibility in the near future. 

Even with massive backing from its long-term investor, SoftBank, it seems that the Japanese conglomerate can’t fully save the company from its ill-fitted fate. 

COVID did a number on the company this year, which seems to be the nail in the coffin for the company, though it wasn’t always in perfect condition before the pandemic outbreak that sent many workers home from the office. 

Since then, leadership has switched around, many big names jumped ship, and now the company itself has been officially downgraded. 

Though the head of the company has high hopes for 2021, this newest blow is going to be a key factor in the corporate climate of the company, moving forward.

October 24, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Proptech Group Results Generic
PropTech Group Shows Impressive Growth in Q1 Figures

The ASX-listed property technology group The PropTech Group has released figures for Q1 of its FY22 operations. Headline figures from...

Read More
Bien Ici Paris
Bien’ici Debuts New Elixir Property Platform

French property portal Bien’ici has launched a technology platform focused on sales of new property projects. Elixir aims to provide...

Read More
Dutch Portal Funda Acquires Commercial Player RealNext

Dutch commercial property platform RealNext has been acquired by NVM in a move that will see its assets incorporated into...

Read More
Zumper Movoto Deal
US Portal Operators OJO Labs and Zumper Sign Listings Deal

The US real estate portal operator OJO Labs has announced that it has signed a listings partnership deal with rental...

Read More

Popular News