Fitch International Re-Rates Cannabis Producer Canopy for Constellation Ties

Canopy Growth's plans to enter the U.S. cannabis market have hit another roadblock - this time because of the cannabis producer's relationship with its largest investor. Fitch Ratings downgraded its credit rating on Ontario, Canada's Canopy to CCC-, one of its lowest ratings, which refers to a "significant credit risk" and therefore a high probability of default. The New York-based rating firm said the strategic ties between Canopy's largest investor, alcohol giant Constellation Brands (CBI), and licensed cannabis producers "have weakened significantly" after Canopy announced plans to accelerate its entry into the U.S. THC market. Fitch said, "As a result, Canopy's rating no longer benefits from a Tier 1 upgrade to its standalone credit profile."

Information source: new.qq.com/omn/author/8713560