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S&P assigns junk rating to Twitter's debt; Outlook is stable
[CNBC] Standard & Poor's assigned a junk rating to Twitter's debt on Thursday, saying the company had a "fair" risk profile.S&P's unsolicited rating of "BB-" is three notches below investment grade. The company sold $1.8 billion worth of convertible notes in September. S&P holds a "stable" outlook on the social media firm as it expects it "to experience very strong growth and not encounter a significant increase in competitive pressure," the ratings agency said in a note. Twitter shares closed down nearly 5.9 percent Thursday. Twitter's 1 percent Sept. 15, 2021 convertible note was last trading at 90.4272, down 0.8 percent from Wednesday's close. "We could raise the rating if Twitter broadens its revenue sources through international expansion and new product launches, maintains its market position, continues to improve its profitability, and achieves positive and sustained discretionary cash flow in excess of $100 million in 2016," the note said. Posted by: Fred 2014-11-14 |
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