The yield on WeWork’s bonds have grown above 10% to a record level after S&P Global Ratings cut the firm’s credit rating to a B-.
The We Company saw its 7.875% bonds fall 3.25 cents on the dollar to 87.75 cents. The yield topped 10% for the first time since March.
WeWork’s slashed credit rating puts it on the edge of the market’s weakest tier of borrowers. Its rating could be cut even further next year if the company fails to get more financing
This comes on the heels of the company’s delayed IPO and news of CEO Adam Neumann resigning from his position.