Wework credit rating slashed after casting doubt over its future
Troubled office space provider Wework saw its credit rating slashed yesterday evening after the firm cast doubt over its ability to continue operating.
US credit rating agency Fitch Ratings cut Wework’s rating from CC to CCC. This is one of the lowest rankings on the credit rating scale, and means the agency believes there is a much higher chance the company will default on its debt obligations.
Fitch said the downgrade was due to “worse than expected” second quarter financial results and its public warning rasing concerns about its ability to continue.
Last week the flexible workspace giant warned that the company faces significant challenges including softer demand and a “difficult” operating environment.
Wework was once one of the fastest growing businesses in the world, but it has been hit hard by the rise of work from home and hybrid working, which has reduced the demand for office space.
Wework was approached for comment.