S&P Global Inc. has complied with a request from Canopy Growth Corp. (TSX: WEED) to withdraw its credit ratings following the cannabis company’s decision to amend a 2022 credit agreement.
The New York-based ratings and research firm had previously given Canopy a “selective default” rating on its long-term issuer credit, indicating the company had failed to meet one or more of its financial obligations on time.
The change stems from an October 2022 amendment to Canopy’s term loan credit agreement, which eliminated the need for ratings from two agencies. A Canopy representative told Bloomberg that the move is part of the company’s ongoing efforts to streamline resources, which led to the decision to withdraw its public rating with S&P.
Presently, Canopy holds a “CCC-” rating from Fitch Ratings, after getting downgraded in October 2022. Fitch’s decision was based on a perceived significant reduction in the financial ties between Canopy and its main investor, Constellation Brands Inc.
This withdrawal from S&P follows Canopy’s recent voluntary application for a management cease trade order with various regulatory bodies, following the need to refile several quarters worth of financial statements due to problems with the accuracy of reported figures for its BioSteel Sports Nutrition segment.
Originally, Canopy had intended to release its year-end fiscal 2023 financial results earlier this week.
Canopy Growth Corp. last traded at $1.18 on the TSX.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
