Fitch downgrades WeWork after aborted IPO leaves financing hole

NEW YORK, United States - Global credit rating agency Fitch Ratings on Tuesday downgraded WeWork's credit rating by two notches to "CCC+," putting the Softbank-backed office-sharing firm deep into junk territory a day after it abandoned an initial public offering.

WeWork, whose parent We Company lost $1.9 billion in 2018, had hoped to raise at least $3 billion in the abandoned IPO and borrow a further $6 billion in a loan from banks that was contingent on the listing.

"In the absence of an IPO and associated senior secured debt raise, WeWork does not have sufficient funding to meet its growth plan," Fitch wrote in a note.

Additionally, Fitch warned that there is a potential for WeWork's customers, particularly big companies, to "hesitate to sign membership agreements" given the current flux. It said there was no evidence of this yet.

WeWork's rating outlook is also negative, Fitch added.

WeWork declined to comment.

Monday's decision to scrap the IPO marked the conclusion of a tumultuous few weeks for WeWork, which failed to excite investors who raised concerns about its ballooning losses and a business model that involves taking long-term leases and renting out spaces for a short term.

Fellow ratings agency Standard & Poor's last week downgraded WeWork to "B-" from "B".

Both "CCC+" and "B-" are junk bond ratings reserved for corporate borrowers judged to be higher risk to lenders.

WeWork is in discussions with banks as well as its largest investor SoftBank Corp about potential alternative funding, two sources familiar with the matter told Reuters on Monday.

Fitch said it could revisit the rating if WeWork was "able to negotiate a firmly committed financing plan and demonstrate successful implementation of any turnaround plan."

WeWork's 7.875 percent junk bond was last trading at about 84 cents on the dollar, according to MarketAxess, a significant discount to face value, which indicated investor concerns about repayment or doubts about the company securing alternative financing.

WeWork's new co-CEOs Artie Minson and Sebastian Gunningham, who replaced ousted founder and chief executive Adam Neumann last week, have talked about the need to return to WeWork's core business of renting out trendy office space to freelancers and enterprises. That would pull the company back from the fringe activities Neumann had forayed into, such as education.

Given that, Fitch expects WeWork "will face material restructuring cash charges as it reduces its workforce, which had reached over 12,500 in the second quarter."

WeWork had under $2.5 billion in unrestricted cash at the end of June and is due to receive $1.7 billion from SoftBank in 2020, according to Fitch, which estimated that would provide for four-to-eight quarters of funding, without taking into account any potential restructuring costs.

source: news.abs-cbn.com

Fitch downgrades Hong Kong after months of protests

HONG KONG - Global credit rating agency Fitch Ratings downgraded Hong Kong's long-term foreign currency issuer default rating to "AA" from "AA+" after months of unrest and protests in the region.

Hong Kong's rating outlook is negative, Fitch Ratings said on Friday.

Increasingly violent protests have roiled the Asian financial hub as thousands chafe at a perceived erosion of freedoms and autonomy under Chinese rule.

source: news.abs-cbn.com

Do Credit Repair Services Actually Work?

If your credit score is suffering, you’ll do practically anything to repair it. However, there are all sorts of scams out there that claim to improve your score. How are you supposed to know the difference? When you come across credit repair services on the internet, it’s not easy to know whether you’re looking at something legitimate.

Of course, credit repair services cost money as well, so you have to question whether they’re even worth it. Is it such a big deal to have a poor credit score? Well, we’re going to break this down for you today, and provide you with the information you need to know about credit repair services.

What Are Credit Repair Services?

A credit repair service is there to try and right the wrongs on your credit report. They’ll analyze your credit score to find out why it’s so low, and then try and improve it. They are experts in their field, so they know all the tricks of the trade and they’ll do their best to turn the problem around. In some cases, it might just be as simple as rectifying wrongs like basic errors in your personal information. Not many of us truly understand how credit works and what goes on the report, so these companies are there to help us out.

Why Do I Need To Repair My Credit, Anyway?

Good question! If you aren’t sure why you need to repair your credit, it’s a sure sign that you shouldn’t be trying to handle this task by yourself. Your credit is one of the most important things you need to get right. In the future, when you’re planning to buy houses or take out big loans, you credit score will come into play. If it isn’t up to scratch, you’ll miss out on many opportunities. But don’t fear! A poor credit score comes about as a result of failing to make payments. If this rarely happens to you, your credit score will probably be quite good! However, if you struggle to pay on time, your credit rating will slowly begin to decline. Eventually, it’ll get out of hand, and it’s a good idea to use a credit repair service before you get to that point.


I’ve Heard About Scams…

It’s true that some companies trading as “credit repair services” are merely a scam to provide false hope. Spotting one of these companies is simple as long as you know what you’re doing. Do you research ahead of time and read reviews about the company you intend to contact. For example, a quick glance of Sky Blue Credit Repair reviews shows plenty of positive feedback. You should never be in a position to get scammed as long as you’re taking the right measures to prepare in advance.


How Can They Help Me?

The most obvious way that a credit repair company can help is to speed up the process of improving your credit score. As previously mentioned, they can spot certain mistakes or errors which they can then challenge with the credit bureaus. You can’t always guarantee a positive result, even when the professionals are involved. Some services offer money back guarantees in case they can’t make any real progress. In a nutshell, these companies are there to do everything they can to clean up your credit score by identifying areas of improvement. They are a quick way of solving the problem, and they’ll be able to give you tips to manage your credit more effectively in the future.


Where Can I Find Them?

You’ll find the majority of credit repair services online. A quick Google search will present a vast number of potential options for you to consider, but remember what we’ve already spoken about. Before you go contacting anyone for assistance, make sure you do your research. What you’ll find in the listings of a search engine is not always reputable. As long as you’ve checked reviews beforehand and ensured it’s the right solution for you, you’ll get value for money.

So, it’s clear that credit repair services do work. The key factor in all of this is making sure you do the right preparation beforehand. You take it seriously with the right amount of care, as a good credit score is such an important thing to have. Even if you don’t intend to use it much right now, it’ll affect your future for things like mortgages and loans. Do what it takes to repair your credit score now, and you won’t ever have to worry about it when the time comes.

source: 20smoney.com

Curves and Edges: A Fil-Am in Moody's

MANILA - Just a light side to the guy we reach out to when we need a health check on our country's sovereign ratings.

Christian de Guzman of Moody's, by name, sounds very Filipino, but it's really hard to tell if you just play it by ear.

With his thick American accent, the Filipino roots is imperceptible.

When he was asked, "Pinoy ka ba?", he answered he is a "Fil-Am," or Filipino-American.

He grew up in Manila and at the age of 8 moved overseas, where he studied, worked and eventually lived.

He took on several jobs in the US, among them the IMF in Washington, D.C. before heading to Singapore, where he's been based for some 15 years now, working senior sovereign risk analyst for Moody's.

He last visited Manila earlier this year for an on-the-ground feel of how our Philippine economy is humming along.

He said the Philippines remains resilient to external shocks. Moody's earlier raised the country's foreign and local bond ratings to just a notch below investment grade, with a "stable" outlook.

source: www.abs-cbnnews.com

Fitch: PH economy supports credit ratings

MANILA, Philippines - Debt watcher Fitch Ratings says the Philippines' sustained economic growth will support its credit ratings.

Fitch says the Philippines' ratings are anchored by a resilient economy, supported by a steady inflow of OFW remittances and a credible monetary policy framework.

But Fitch says low income and poor governance are the country's weaknesses.

Fitch lifted the Philippines' rating to investment grade status in March 2013 and maintained it early this year.

An investment grade rating makes it cheaper for the Philippines to borrow money abroad. - ANC

source: www.abs-cbnnews.com

Five Easy Steps to a Better Credit Score

Improving credit score is not really a rocket science.  Check out these five easy steps on how you can get a better credit score:

Apply for a credit card if you don’t have one.  Using a credit card regularly and paying off your monthly charges on time is a great way to boost your credit score.  This does not mean you should spend a fortune on credit card shopping.  You can use your credit card to pay for a small purchase so repayment can be easy.

Choose a credit card with a low rate and with features that matches your lifestyle.  Read and understand the fine print before submitting your application.  Make sure that your payments are reported to the available credit to maintain a high score.  If you own a credit card or credit cards, check your balance first and plan your spending ahead to avoid maxing out your limit.


Manage different types of accounts.  It’s not enough to have a credit card or multiple credit cards in your name.  You can further improve your credit rating by acquiring different types of debt such as a personal loan, a student loan, a car loan, or if you possible, a mortgage loan.

Lenders who check credit history are interested in how capable you are of manage debt and credit.  If you have a credit card, and at least two different loans in your name, this will surely strengthen your credit standing.  Of course, it’s important for you to submit your monthly loan payments on time to protect your personal credit.

Check your credit report regularly.  Consumers are entitled to one free report from each bureau every 12 months or annually. You can visit www.annualcreditreport.com to order your free report for this year.  You may choose to request all your three reports from the three bureaus at once or you can order one report from one bureau throughout the year.  If you want to directly order from a credit bureau, there is a fee of $9 to $12 per report.

Checking your credit report will give you the chance to examine it for possible errors. In case you find an incorrect detail, you can send a dispute letter to the bureau that issued your report.  You must also ensure that all your account activities are accurately recorded.

source: creditcreators.com

Moody's expects improved credit ratings for BPI, Metrobank

MANILA, Philippines - The credit metrics of two of the country’s biggest banks – Metropolitan Bank & Trust Co. (Metrobank) and the Bank of Philippine Islands (BPI) – are expected to continue to improve in the next 12 to 18 months, international rating agency Moody’s Investors Service said.

Moody’s, which affirmed the Baa3/ Prime-3 deposit ratings of both Metrobank and BPI, said the ratings outlook remains positive.

The Baa3/ Prime 3 rating falls under an investment grade, which means the financial institution has the ability to repay short-term debt with moderate credit risk.

Moody’s has also revised the outlook of the D+ standalone bank financial strength ratings (BFSRs) of the two banks – equivalent to a baseline credit assessment (BCA) of baa3 – to positive from stable.

According to Moody’s, it views the two banks’ financial profiles to be strong for their baa3 BCA.

“The banks’ BCA also takes into account the banks’ consistently robust capital and liquidity profiles, which reflect discipline and prudence in business growth,” it said.

Taking into account the banks’ recent efforts to strengthen their capital base in preparation for future business growth, Moody’s said it expects the two banks to maintain capital levels well above the minimum capital requirements under Basel III.

Moreso, the credit rating agency expects an improvement in the operating environment of the Philippine banking system, owing to robust growth of the Philippine economy and stabilizing external conditions.

Moody’s said the credit profiles of BPI and Metrobank are among the most defensive and best positioned to withstand a cyclical downturn among Moody’s rated banks in the Philippines, as well as similar-rated banks in the region.

The baa3 BCAs of the two banks remain in line with the sovereign rating of the Philippine government (Baa3 positive), taking into account the close correlation between the creditworthiness of the banks and that of the government.

Given the positive outlook, Moody’s said an upgrade of the sovereign rating would likely lead to an upgrade of the banks’ ratings, assuming their credit metrics remain robust.

source: www.abs-cbnnews.com

Most Common Credit Myths

Most Common Credit Myths
When you want to have a good credit score a little knowledge can be very powerful. Remember that a good credit score can open doors to many great credit offers. When you apply for a loan for a home or car or even a personal loan banks and other financial institutions use your credit report to determine if you qualify according to their guidelines.

Here are a few of the more common myths about credit:

People who lived in your residence can greatly affect your credit history.

It doesn’t make any difference at all who lived in your residence before you did as long as they did not share your credit history. The main thing any bank or financial institution is interested in is if you are able to repay your loan. They prefer you have a good history of addresses and the longer you live at any one place the better your chances. Lenders don’t like to see potential customers moving from place to place in under a year or so.

Credit agencies are responsible for your credit references.

Credit agencies are not responsible for your credit references. That is the responsibility of banks and financial institutions. They use the information obtained from your credit report to make determinations along with other data to calculate how much you will pay every month.

Previous debts are not considered when applying for a loan.

Yes they do count when applying for a loan as do court judgments for not paying debts and bankruptcies. These items remain on your credit report for at least seven years. Some items will stay on your credit report for longer than that. Even if you miss a payment it stays on your credit report for at least four years. Banks and financial institutions take these into consideration and think you may not repay them or default on payments.

You may be on a credit blacklist.

There is no such thing as a blacklist because of your origin, race, sex or ethnic origin. It is against the law for any lender to consider any of these when applying for a loan. Some of the factors they do consider are how much you currently owe and if you make your payments on time. They want to be absolutely sure you are not overextending yourself by taking on more than you can pay back.

Who you have living in your home such as family or friends can effect your credit rating

It doesn’t matter who is living with you since they do not have anything to do with your credit rating. The only exception is someone that shares a joint account with you say a joint mortgage. If you do have someone living with you that you have a credit connection with lenders will also look at their credit report as well. The reason for this is if they have late payments it could effect you getting approved for a loan.

These are just some of a few myths people believe regarding their credit score. The fact is that in order to dispel these and other misunderstandings one needs to educate themselves on learning how your credit score actually works and all factors that influence it, to what level and what factors do not influence it. Because caring about your credit score can and will make a difference whenever you seek out credit. A better credit score means your creditors will most always provide a better rate of interest when it comes to repaying your loan. This can amount to thousands of dollars with is nothing to overlook.

source: 20smoney.com

Seven Ways to Tackle Bad Credit

For anyone with a bad credit rating, the problems which are inherent with this situation are all too familiar. Bad credit is often an indication that you have County Court Judgments (CCJs) against you and this can be a major deterrent to future creditors.

For those in this situation, addressing their credit rating with the intention of improving it is a major priority – but how exactly can you tackle bad credit?

1. Change your spending habits

The first step in tackling bad credit is to address the source of the problem – and this is usually your spending habits. Review how much you spend on a regular basis and identify areas in which you can make cut backs. These don’t always have to be drastic measures and sometimes even small changes can have a profound difference.

2. Improve your home

Some of the largest expenditures which consumers face are related to the home. Making improvements to this area, such as reducing energy consumption, are a great way to tackle high costs and can be relatively easy to implement.

3. Pay on time

If you have any outstanding debts or repayments for bad credit loans then it is important that you pay these on time. Failure to do so will see you fall into further debt, facing higher repayments as a result. This will not help you to become debt free and will directly influence your credit rating.

4. Take loans

It may seem strange, but taking loans can often be a viable way of improving your credit rating. This is because loans which are specifically designed for those with poor credit ratings are intended to be easier to repay and thus help you prove your ability to keep to financial commitments. This can then improve your credit rating with both short and long term loans for bad credit available.

5. Track your finances

One of the biggest problems which individuals encounter when in debt is an inability to keep track of what payments they need to make. This can lead to missed payments, causing the individual to fall into further debt and thus negatively affecting their credit rating. To address this problem, keep a comprehensive list of both your incoming and outgoing finances and balance these at the end of each month.

6. Identify problems

Without knowledge of the problem, there can be no solution so it is important that you identify where it is that your financial management is going awry. Look for areas where you regularly overspend or consider whether you have too many outgoings occurring at a particular time of the month and amend as necessary.

7. Negotiate with creditors

If you find that you are struggling to make repayments then it is important that you speak to your creditors. More often than not they will be willing to negotiate an alternative schedule with you. This will make it easier for you to meet your financial commitments – giving you less to worry about and ensuring your credit rating is not worsened through missed repayments.

source: marriedwithdebt.com

Moody's drops France's credit rating

Credit rating firm Moody's Investors Service lowered France's AAA rating a notch Monday, citing the country's high exposure to investments in Spain and Greece.

Moody's said the outlook for France to steer clear of trouble was diminishing, given the high level of investments in troubled eurozone countries, The Daily Telegraph reported Monday.

Moody's, which dropped France from the top rating of AAA to Aa1, also cited France's poor track record in making changes.

Moody's, which gave France's rating a negative outlook nine months ago, is now the second major credit rating agency, along with Standard & Poor's, to downgrade its credit rating.

Fitch Ratings, which is a French company, has so far left France at AAA.

Moody's said France was being hurt by rigid labor laws and outmoded corporate regulations.

While President Francois Hollande's administration was attempting to make positive changes, "The track record of successive French governments in effecting such measures over the past two decades has been poor," Moody's said.

"Moody's is now giving France the same rating as Standard & Poor's, which has allowed us to live with low interest rates for many months," said French Finance Minister Pierre Moscovici, referring to borrowing costs for the French government, which have not been adversely affected by the change in its credit status.

However, "further shocks to sovereign and bank credit markets would further undermine financial and economic stability in France as well as in other euro area countries," Moody's said in a statement.

source: upi.com

Five Key Facts About Credit Ratings

Having a good credit history is very important when it comes to making an application to borrow money, and most people agree that credit ratings are extremely important. However, very few people actually know precisely what a credit rating is and how they’re constructed, so we’ve pulled together five key facts that will give you a much clearer idea about everything concerning credit.



A lot of people say “it’s too complicated to check my credit history” but it’s actually very easy with companies like CreditExpert and time extremely well spent. You have the right to see your credit rating and to make sure that any errors that are on it are corrected immediately. Most of the time the credit companies will do amend any errors for free. Bear in mind that simple things like old mobile phone contracts that were never fully cancelled can have an effect, so it’s good to do a spring clean at least once a year.

Black Lists Don’t Exist

Each lender has their own criteria of what represents the perfect customer, and it might not necessarily be the same from lender to lender (in fact, the odds are that it’s not). So, just because you’ve been turned down from one bank doesn’t mean that you’ll get turned down by another. However, it’s a good idea not to make too many applications in quick succession, as each time you do a ‘search’ will be carried out on your credit rating, and too many searches in a short period could raise the alarm.

Profit Is More Important Than Risk

Most people assume that the banks decide who they’ll lend to on a basis of risk. If you’re not likely to pay back any debt in full, they shouldn’t lend. Unfortunately, that’s not the case, if you have a perfect credit history, never have credit card debt and pay everything off in full as quickly as possible you could still be rejected because you won’t make the bank very much money. This is rare but it does happen.

Use Your Rights

As mentioned above you can correct any errors on your credit report simply by writing to the credit agency concerned, however, sometimes you may have to talk to the company who filed the report, rather than the credit agency. There are a whole strings of rights attached to credit reports, and you should never have to pay to have something amended. If you’re having real problems, you can always talk to the Citizen’s Advice Bureau.

Your Credit Score is Not Fixed

You may have seen adverts for products that will ‘repair your credit score’ and these will usually cost you money without making any difference to your score. However, there are a whole list of things you can do to improve your credit rating, whether it’s something simple like getting on the electoral roll, or cancelling an old phone contract. So, if you do check your rating and it’s not so good, there’s no need to fear the worst.

source:  christianfinanceblog.com