S&P may downgrade Twitter's ratings after company's purchase by Musk

S&P Global Ratings has placed Twitter's "BB+" credit rating on the list for review with the possibility of downgrading following the announcement of the company's purchase by entrepreneur Elon Musk, Report informs, citing the rating agenda.

A day before, Twitter announced the conclusion of a definitive agreement on the purchase of the company by Musk for $44 billion.

S&P said in a statement that the acquisition will be financed by a combination of debt and equity, and the company expects Twitter's leverage to be well above its 'BB+' rating of 1.5x. As such, it placed all of its Twitter ratings, including its credit rating, at 'BB+', to the list for review with the possibility of downgrading,

The agency expects to decide on the company's ratings after the acquisition itself. It is noted at the same time that Twitter ratings may drop several notches at once.