Moody’s Downgrades Twitter After Leveraged Buyout
- In a statement Monday, the credit rating firm downgraded Twitter to B1, four steps into junk territory. Moody’s forecasts a significant debt growth and cash decrease to increase leverage and deteriorate key credit indicators. Governance was “a primary driver” of Moody’s rating action. Credit ratings are under scrutiny for downgrading.
- “Twitter’s governance risk is significantly negative reflecting Moody’s anticipation for aggressive financial practises and concentrated ownership by Elon Musk,” Moody’s stated.