Fitch downgrades WeWork

Fitch Ratings said it downgraded WeWork Cos. LLC by two notches to CCC+ following the company's formal withdrawal of its IPO registration statement.

Fitch also downgraded the senior unsecured note rating to CCC/RR5.

The outlook is negative.

“The downgrade and outlook reflect WeWork's uncertain liquidity profile in the absence of its earlier plan to raise at least $3 billion in an IPO plus $4 billion in senior secured debt along with $2 billion in letter of credit capacity,” the agency said in a news release.

Fitch said it anticipates that WeWork will dramatically scale back its growth ambitions and associated overhead expense that led to its precarious liquidity position.

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