S&P lowers WeWork Cos.

S&P said it lowered its issuer rating on WeWork Cos. LLC to SD, selective default, from CC and its 7 7/8% senior unsecured notes due 2025 to C from CC.

“The downgrade follows WeWork's completion of transactions that we view as distressed and tantamount to a default. The company announced that it concluded the exchange of about $1.048 billion of old notes–including about $507 million of its 7 7/8% senior unsecured notes (75.8% of outstanding) and about $541 million of its 5% senior unsecured notes (98.3% of outstanding)–for new second-lien notes, new third-lien notes and shares of class A common stock, among other transactions,” the agency said in a statement.

S&P said it plans to review WeWork’s ratings to determine the ongoing risk of a conventional default or future distressed restructurings and to formulate a forward-looking opinion of its creditworthiness.

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