Skip to content

Twitter’s Credit Grade Cut by Moody’s Following Leveraged Buyout

  • The credit company lowered its rating two notches to B1
  • Social media giant’s ratings remain on review for downgrade
Outside Twitter headquarters in San Francisco.

Outside Twitter headquarters in San Francisco.

Photographer: David Paul Morris/Bloomberg

Moody’s Investors Service lowered its credit rating for Twitter Inc. following the close of the social-media giant’s leveraged buyout by Elon Musk. 

The credit rating company cut Twitter two notches to B1, or four steps into junk territory, according to a statement Monday. Moody’s said it expects that a substantial increase in debt and reduction of cash will result in a material increase in leverage and weakening of other credit metrics. Moody’s cited governance “as a major driver” of the rating action. The credit ratings remain on review for downgrade.