Bond agency gives ‘junk’ rating

Standard & Poor’s assigns an unsolicited rating of BB- to Twitter’s corporate debt, after its sale of $1.8 billion convertible notes in September, rating its risk profile at Fair. It said the outlook on the rating is stable:

[Twitter is expected] to experience very strong growth and not encounter a significant increase in competitive pressure. We could raise the rating if Twitter broadens its revenue sources through international expansion and new product launches, maintains its market position, continues to improve its profitability, and achieves positive and sustained discretionary cash flow in excess of $100 million in 2016.

The agency could lower the rating if revenue contracts or other investment-negative events occur.