Fitch downgrades WeWork

Fitch Ratings said it downgraded WeWork Cos. LLC and WeWork Inc.'s long-term issuer default ratings to CCC from CCC+ and WeWork Cos.' senior unsecured notes one notch to CC/RR6 from CCC-/RR6.

“Fitch views WeWork's sustained negative EBITDA and FCF as key limiting factors that restrict its operating and financial profile and limit the IDR to the CCC rating category. Fitch is encouraged by meaningful improvements in operating losses during 2022, but the current estimates for 2022 EBITDA in the range of negative $435 million to $455 million indicate the company still faces significant challenges. These challenges may be exacerbated by deteriorating macro conditions in 2023, and without additional restructuring, Fitch is modeling continued negative EBITDA for the next 12 to 18 months,” the agency said in a press release.

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