Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

S&P Withdraws Twitter's Credit Rating due to Lack of Information

Sun 04 Dec 2022 | 08:29 AM
Taarek Refaat

Standard & Poor's Global Ratings withdrew Twitter's credit rating, saying it lacks enough information to continue covering Elon Musk's social media company, according to Bloomberg.

Standard & Poor's, one of the largest US companies, said in a statement on Friday that the action came "due to a lack of sufficient information to maintain the rating."

At the time the rating was withdrawn, Twitter and its debt were under credit watch, indicating an imminent rating action.

Twitter's massive debt load of about $13 billion was funded directly by banks led by Morgan Stanley when Musk's $44 billion acquisition of the social media giant closed.

Since then, Musk's acquisition of Twitter has fundamentally changed the company's operations and products. Those changes included mass layoffs, feature changes, and a wide range of companies pulling large amounts of advertising from the platform.

S&P downgraded the company's rating by five notches to "B-" from "BB+" in early November due to the high leverage after the acquisition.

The ratings firm "expected to receive further information regarding the final capital structure and any possible changes to operating strategy," according to an update in November.

However, the ratings company said at the time that "may not happen until the company's new debt has been pooled".