S&P Global Inc has pulled its credit ratings of Canopy Growth Corporation (TSX:WEED, NYSE:CGC) at the company’s request, the credit-ratings and research firm revealed on Monday.
S&P said the Canadian cannabis company chose to withdraw all of its ratings from the firm, including its ‘selective default’ long-term issuer-credit rating, which S&P described as failing to pay one or more of its financial obligations when it came due.
“The requirement to hold ratings from two agencies was eliminated through the October 2022 Term Loan credit agreement amendment and reflecting Canopy’s continued efforts to streamline resources, the company has decided to withdraw its public rating with the S&P,” a spokesperson for Canopy Growth told BNN Bloomberg.
In October, Fitch Ratings downgraded Canopy Growth credit worthiness to its current ‘CCC-‘ after the agency determined that financial ties between it and its main investor, Constellation Brands (NYSE:STZ) Inc., had “materially diminished.”
More recently, Canopy voluntarily applied to various regulatory authorities for a management cease trade order after it disclosed earlier this month that it would have to refile several quarterly financial reports from 2022 after misstating sales on its sports performance drink BioSteel Sports Nutrition subsidiary.
A company spokesperson revealed to BNN Bloomberg last week that it will not file its year-end fiscal 2023 financial results on time as a result of prioritizing the refiling of its 2022 reports.
Contact Sean at sean@proactiveinvestors.com