Fitch upgrades WeWork

Fitch Ratings said it raised WeWork Cos. LLC and WeWork Inc.'s long-term issuer default ratings to CCC+ from CCC. The agency also upgraded WeWork Cos.' senior unsecured notes to CCC-/RR6 from CC/RR6.

“The upgrade reflects improvement in WeWork's financial position over the past year. The company rationalized its location portfolio with commercial landlords, preserving its reputation and reducing occupancy costs. The demand environment for workspaces also improved as employers returned to work and companies pursue increased flexibility,” Fitch said in a press release.

The proceeds from its recent IPO provide WeWork with sufficient liquidity to meet its cash needs under the agency’s base case scenario, Fitch said.

“Refinancing risk remains high but manageable to the extent capital market conditions remain reasonably favorable,” the agency said.

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