WeWork faces default

Ratings agency Fitch dropped WeWork’s long-term issuer default rating Thursday one notch from CCC+ to CCC. Both scales are non-investment grades (AKA junk bonds), representing a real possibility that the company will default on its credit obligations, according to The Real Deal.

• Heard on the Street: Fitch: “While WeWork has made material progress to reduce its cash burn rate, in a scenario where demand is structurally lower, Fitch sees WeWork as potentially requiring additional liquidity sources inclusive of and beyond the full $3.3 billion SoftBank financing commitment.”

• Worth Noting: WeWork’s bonds that mature in 2025 were most recently trading at about 61 cents on the dollar. [Fitch+TRD]