Twitter dropped to a junk rating

STANDARD & Poors has downgraded Twitter to “junk” status, sending its shares to shed five per cent.

The credit rating agency cited cashflow issues for the BB- rating.

S&P said the social media giant would need to broaden its revenue base in foreign markets in order to improve its rating. But the agency said growth prospects remained encouraging Twitter’s shares fell 5.9 per cent to close at $40.04.

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