After WeWork opted to not to make a $95 million interest payment, Fitch Ratings downgraded WeWork’s credit rating from CC to C.
This move by Fitch suggests that a “default-like” process has already commenced for WeWork, as reported by the The Real Deal. The company’s decision to hold payments was reportedly not due to a lack of funds, but was intended as a strategic decision to initiate negotiations with lenders. However, this tactic was not well-received by investors — leading to a 28% drop in WeWork’s share price within a month.
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WeWork’s financial moves and struggles are under the attentive watch of stock traders, landlords, and rival coworking operators.
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Source:
The Real Deal
