Canary Wharf has suffered a further debt downgrade following an exodus of office workers in the wake of the pandemic.
Fitch Ratings has downgraded Canary Wharf Group deeper into junk status to reflect “cash flow constraints” and the looming refinancing of a £350m bond.
Fitch and Moody’s, another credit ratings service, which has itself unveiled plans to leave Canary Wharf, both cut their ratings for the group last year as the value of its office portfolio slumped.
The east London financial district, which got its name from the quay where fruit and vegetables from the Canary Islands were once offloaded, has struggled to attract workers since Covid-19 fuelled an increase in remote working.
This week it emerged that it had received just a single bid for two floors in its flagship One Canada Square tower, which has sat empty since the pandemic.
Since the Bank of New York Mellon vacated the floors at the end of 2021, they have been marketed for prospective tenants to rent at a discounted rate.
However, University College London has been the only occupier to show interest and is now aiming to convert the floors into education space.