Fitch downgrades Canopy Growth again To CCC
Fitch downgrades Canopy Growth again To CCC
MJ Biz report
Fitch downgraded the rating for Canadian cannabis producer Canopy Growth to CCC, the agency’s fifth-lowest rating, and warned of potential further negative actions.
Fitch’s CCC rating carries substantial credit risk with a “very low margin for safety” and a “real possibility” of default, per the agency’s ratings scale.
Canopy’s issuer default rating was previously rated B-, or highly speculative.
Fitch Ratings said the downgrade reflects:
Significant market-share losses in the Canadian cannabis market.
Execution missteps.
Challenges pivoting its cultivation strategy.
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