Fitch cuts, then ups WeWork

Fitch Ratings said it downgraded WeWork Cos., LLC’s and WeWork Inc.'s, collectively WeWork, long-term issuer default rating to Restricted Default, RD, from C, following the company's completed exchange offers, which the agency considers a distressed debt exchange. Fitch subsequently upgraded the IDR to CCC-, reflecting WeWork's post-restructuring credit profile.

Fitch also assigned first-time ratings of CCC/RR3 to its new first-lien bonds as well as a first-time rating of C/RR6 to its new second-lien bonds. Fitch also downgraded the unsecured bonds to RD and subsequently raised them to C/RR6.

“WeWork's recent restructuring provided adequate liquidity for the near term. As of March 31, 2023, the company reports $422 million of cash on the balance sheet and a new first-lien delayed draw facility of $475 million, which is undrawn. Fitch expects this liquidity to be sufficient for the next 12 months, but this depends on WeWork's continued improvement on operating performance,” the agency said in a statement.

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