Fitch downgrades WeWork after IPO withdrawal

Fitch has downgraded WeWork following the formal withdrawal of its IPO. The ratings agency has cut the ratings of WeWork Companies LLC and We Co by two notches to CCC+. Fitch has also downgraded the senior unsecured note rating to CCC/RR5 and said its outlook is negative for the company owing to its “uncertain liquidity profile in the absence of its earlier plan to raise at least $3bn in an IPO plus $4bn in senior secured debt along with $2bn in letter of credit capacity". It added that without the IPO WeWork has insufficient funding to deliver its growth