Canopy Growth (WEED) has asked S&P Global (SPGI) to withdraw its credit ratings on the Canadian cannabis producer.
New York-based S&P Global said Canopy Growth elected to withdraw all its credit ratings from the firm, including ratings that indicate whether the company failed to pay one or more of its financial obligations.
Holding credit ratings is voluntary in Canada, though most companies maintain ratings from at least two agencies.
A credit rating is an estimate of the ability of a person or business to fulfill their financial obligations and pay back debt based on previous dealings.
Canopy Growth currently holds a low CCC- rating from Fitch Ratings, which downgraded the Smiths Falls, Ontario-based cannabis company last October after determining that the financial ties between it and its main investor, Constellation Brands (STZ), had deteriorated.
The request by Canopy Growth to have S&P Global pull its credit ratings comes as the company refiles several quarterly financial reports from 2022 after misstating sales for its BioSteel sports drink.
Canopy Growth was scheduled to release its fiscal 2023 financial results today (May 30) but has announced that it will not do so as it prioritizes the refiling of its 2022 financial statements.
Canopy Growth’s stock has declined 80% over the last 12 months and now trades at $1.23 per share.
