Fitch cuts WeWork

Fitch Ratings said it downgraded WeWork Cos., LLC and WeWork Inc.'s long-term issuer default rating to D from RD, Restricted Default, after the company filed for Chapter 11 bankruptcy protection on Monday.

The agency said it also cut the first-lien debt to C/RR4 (40%) from CC/RR3. Fitch affirmed the second-lien and unsecured debt at C/RR6 (0%).

“Given the challenging environment for commercial office space, the company will have significant negotiating leverage with its landlords; however, its co-working peers have also struggled with underperformance,” Fitch said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.