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.