Fitch slices Canopy

Fitch Ratings said it downgraded the ratings for Canopy Growth Corp. and 11065220 Canada, Inc., including the long-term issuer default rating to CCC from B-.

“The ratings downgrade reflects Canopy's significant market share losses in the Canadian market, given execution missteps and operating challenges with pivoting its cultivation strategy, which has resulted in weak operating results with an uncertain path to profitability and reduced liquidity. As a result, it is highly doubtful that Canopy can improve EBITDA trends to reach operating cash flow breakeven in fiscal 2025(March 31) as Fitch previously expected, and creates greater uncertainty around capital structure sustainability,” the agency said in a press release.

The outlook is stable.

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