Twitter's debt has been given "junk" status by US ratings agency Standard & Poor's.
The credit agency gave Twitter's $1.8bn (£1.1bn) September debt issue a BB- rating, which is three notches below investment grade.
As a result, Twitter's shares dropped more than 5% on Thursday.
In its explanation, S&P said the rating could be raised if the social network increases its revenue through international expansion and new product launches.
It gave Twitter a stable outlook because it says it expects it to experience "very strong growth", and points out that there are no obvious likely competitors on the horizon.
The rating came just a day after Twitter announced new features including the ability to upload and share videos directly to Twitter, and customising the way tweets are shown.
Twitter's share price is down 40% since 1 January this year.
A 7% fall in timeline views per user - a key measure of engagement - was reported by Twitter in October.
It has also said that fourth-quarter revenue may fall short of market expectations of £286.1m.
No comments:
Post a Comment