WeWork´s layoffs and credit rating cut

The US office-rental company WeWork has said it is in the process of laying some of its employees after the abandoned IPO process. According to Bloomberg, the size of the layoffs will be published later this month.
The company faced also a credit rating cut from Fitch. According to Fitch, the office provider is now in the CCC+ category, which means a junk bond rating. The credit outlook is now negative.
WeWork was planning a 20 billion dollar IPO deal for this autumn, but the largest owner Softbank decided to postpone the IPO related to market conditions.
After the decision the company also announced changes in the top management. The company has now two co-CEOs Artie Minson and Sebastian Gunningham after the former CEO Adam Neumann decided to step back from operating role and focus on the board work.

 

Business Finance Tech

Morningstar to buy Toronto DBRS with 699 million dollars

The US mutual funds rating company Morningstar has acquired a Toronto-based DBRS credit ratings. The 699 millions dollars deal was published on Wednesday.

According to Morningstar, it is entering the credit ratings markets with the acquisition, which is dominated by the three agencies S&P, Moody´s and Fitch. Morningstar says it will expand the global coverage and provide an enhanced platform.

DBRS, which is the fourth largest rating company in the world, reported a 167 million dollars revenue for the fiscal year ended November 2018.

 

 

 

 

Business Finance

UK rating still at risk of no-deal Brexit – S&P and Fitch

The UK credit rating is still at risk from a no-deal Brexit,says the S&P Ratings and Fitch Ratings according to Reuters. 

– The agreement between the EU and the UK to further extend the process to the end of October 2019 reduces but does not eliminate the risk of a no-deal Brexit over the next six months, Fitch said on Friday.

The UK Goverment has been negotiated with the EU leaders and the UK Parliament in order to avoid this kind of situation and thus avoid the possible economic and financial stress elements. Both credit agencies have a AA rating on the UK Goverment debt.

S&P has a negative outlook for the British economy and according to the agency the outlook could be revised to stable if there will be more certainty about the negotiations with the EU.

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