CCT - Crypto Currency Tracker logo CCT - Crypto Currency Tracker logo
Seeking Alpha 2021-06-09 20:24:43

MicoStrategy assigned CCC+ issuer credit rating by S&P Global

Joe Raedle/Getty Images News S&P Global Ratings assigns a 'CCC+' issuer credit rating to MicroStrategy (MSTR), or seven levels below investment grade. The company's $500M issue of senior secured notes get a 'B-' issue-level rating (also below investment-grade). In Q3 2020, MSTR started buying bitcoin (BTC-USD) for its balance sheet. It will use the proceeds from the $500M notes offering to purchase more bitcoin. S&P expects MicroStrategy's operating results will remain consistent over the next 12 months given its good recurring revenue base and the low interest expense on its convertible debt, which will allow it to maintain good EBITDA interest coverage and generate positive free operating cash flow. S&P Global Ratings notes, however, "due to its very high leverage we believe the company could face difficulty in addressing its convertible debt maturities if bitcoin's price approached zero." If bitcoin falls below $6K per coin over the next 12 months,

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.