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Twitter’s credit standing withdrawn by S&P over lack of knowledge

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Twitter Inc.’s credit score grade was withdrawn by S&P International Rankings, which stated it lacked adequate info to proceed protecting the Elon Musk-owned social media firm.

The ranking agency, which is among the many high within the US, stated the motion was “resulting from an absence of adequate info to take care of the ranking” in a launch on Friday. On the time of the withdrawal, each Twitter and its debt had been on “CreditWatch,” suggesting an imminent ranking motion. 

Twitter’s huge about $13 billion debt load was funded instantly by banks led by Morgan Stanley when Musk’s $44 billion acquisition of the social media big closed. Since then, Musk’s takeover of Twitter has introduced sweeping modifications to the corporate’s operations and product. These modifications included mass layoffs, modifications in options and a raft of corporations pulling promoting {dollars} from the platform. 

The group of banks that funded the buyout now face the problem of syndicating the debt to buyers, a lot of whom use ranking corporations to find out the chance concerned in shopping for credit score. 

S&P downgraded the corporate 5 notches to B- from BB+ on Nov. 1 on account of its excessive leverage post-acquisition. The ranking agency anticipated to “get hold of extra info concerning the ultimate capital construction and any potential modifications to the working technique,” in line with the November analysis replace.

Nonetheless, the ranking agency stated on the time, that “might not happen till the corporate’s new debt is syndicated.”

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