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Block/Square: BB Twitter: Ba2 Telsa: A-AAA depending on the debt type However, Telsa and Twitter are likely to have credit impacts if Musk acquires Twitter b
by colburnmh 4y ago
Block/Square: BB
Twitter: Ba2
Telsa: A-AAA depending on the debt type
However, Telsa and Twitter are likely to have credit impacts if Musk acquires Twitter because of the structure of the deal. Musk is using $62 BN of Tesla stock to finance the Twitter buyout, which increases Telsa's debt leverage, and will introduce $13 BN of new debt for Twitter. Both companies could see a drop in credit ratings, at least temporarily.
But the market is fickle, and Musk is unpredictable, so...
Sources:
https://www.fitchratings.com/entity/square-inc-97197931 https://www.fitchratings.com/entity/square-inc-97197931
https://www.marketwatch.com/story/twitter-credit-faces-a-multiple-notch-downgrade-as-musks-buyout-leads-to-significant-spike-in-debt-11651000133 https://www.marketwatch.com/story/twitter-credit-faces-a-mul...
https://www.fitchratings.com/search?query=tesla https://www.fitchratings.com/search?query=tesla