Canary Wharf's Credit Rating Downgraded Amid Post-Pandemic Office Exodus

Fitch cuts Canary Wharf Group's rating deeper into junk territory due to refinancing risks and reduced demand for office space.

Fitch has downgraded Canary Wharf Group's credit rating from BB to B, citing short-term refinancing risks and cash flow constraints.
The group faces the challenge of refinancing £350 million in bonds due in April 2025, with additional bonds maturing in 2026 and 2028.
High-profile tenants like HSBC and Clifford Chance are leaving Canary Wharf, further impacting the office market already hit by the rise in remote work.
Canary Wharf has been transitioning from purely office space to mixed-use, attracting life science tenants and increasing residential occupancy.
The group's joint owners, Brookfield and Qatar Investment Authority, have injected £300 million in new equity and are exploring the sale of stakes in its shopping malls.