Because Elon Musk burdened the short message service with billions in debt with his takeover, the rating agency had previously lowered the credit rating to the so-called junk area.
The rating agency Standard & Poor’s (S&P) has withdrawn its credit rating for Elon Musk’s online platform Twitter due to a “lack of sufficient information”.
The company announced this yesterday in Chicago. Musk bought Twitter for around $44 billion at the end of October. The star entrepreneur took the short message service off the stock market so that it no longer had to submit public business reports.
As part of the acquisition, Musk saddled Twitter with billions of dollars in debt. Due to these burdens, S&P lowered the credit rating by five notches to “B-” on November 1 – and thus even lower into the so-called junk area for highly speculative investments. In addition, the credit watchdog had taken the rating under stricter observation. However, due to a lack of insight into the financial situation, S&P no longer sees any possibility of an evaluation.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
