S&P downgrades WeWork, view to negative

S&P said it downgraded WeWork Cos. LLC to B- from B and the rating on the company’s senior unsecured notes to B from B+.

“The downgrade reflects heightened uncertainty around The We Company’s ability to raise capital to support aggressive growth and the pressure this places on liquidity. These uncertainties stem from the weak reception of The We Company’s IPO, partly related to what we view as subpar governance practices,” said S&P in a press release.

The agency also revised the outlook to negative from stable and its liquidity assessment to less than adequate.

“The negative outlook reflects the uncertainty tied to the company’s capital raising ability and impact on its liquidity position in 2020 following poor market reception to its IPO,” S&P said.

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