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Twitter Inc.’s credit score grade was withdrawn by S&P International Scores, which stated it lacked ample info to proceed masking the Elon Musk-owned social media firm.
The score agency, which is among the many prime within the US, stated the motion was “resulting from a scarcity of ample info to take care of the score” in a launch on Friday. On the time of the withdrawal, each Twitter and its debt have been on “CreditWatch,” suggesting an imminent score motion.
Twitter’s large about $13 billion debt load was funded straight 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 adjustments to the corporate’s operations and product. These adjustments included mass layoffs, adjustments in options and a raft of firms pulling promoting {dollars} from the platform.
The group of banks that funded the buyout now face the problem of syndicating the debt to traders, a lot of whom use score firms to find out the danger concerned in shopping for credit score.
S&P downgraded the corporate 5 notches to B- from BB+ on Nov. 1 because of its excessive leverage post-acquisition. The score agency anticipated to “acquire extra info concerning the ultimate capital construction and any potential adjustments to the working technique,” based on the November analysis replace.
Nonetheless, the score agency stated on the time, that “might not happen till the corporate’s new debt is syndicated.”
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