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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