Why Canopy Growth Stock Couldn't Catch a Buzz Today
Top Canadian marijuana company Canopy Growth (NASDAQ: CGC) wasn't tops with investors on Tuesday. Its shares took a nearly 5% hit after a credit rating agency downgraded it.
Fitch, one of the Big Three U.S. credit rating agencies, reduced its assessment of Canopy Growth's debt from a B- rating to a CCC. That, by the way, happens to be the fifth-lowest rating that Fitch assigns to debt.
The credit rating agency explained that the move "reflects Canopy's significant market share losses in the Canadian market, given execution missteps and operating challenges with pivoting its cultivation strategy, which has resulted in weak operating results with an uncertain path to profitability and reduced liquidity."
Source Fool.com
