Weekly Credit Tracker
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Weekly Credit Report – On May 28, 2025, Ascend Wellness (AAWH: CSE)(AAWH: OTCQX) issued an additional $50M face amount of its existing 12.75% Senior Notes due July 2029.
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- The notes were sold at 97.5% of par to yield 13.55% to the July 16, 2029 maturity. This is excellent execution, as the company’s bond issue was offered in a small size at approximately a 13.20% yield late last week.
- Proceeds will be used to refinance the company’s $60 million term loan, which was scheduled to mature in August 2025. The refinancing eliminates any substantial debt maturities until 2029.
- The Viridian Credit Scoring Model ranks Ascend as #9 among the 11 US MSOs with a market capitalization of over $50 million. The ranking is strongly influenced by its high leverage ranking at #10/11, which reflects the company’s extremely high 13.68x total liabilities to market cap, somewhat mitigated by stronger than median cash flow.
- The chart below shows our ranking for the group. See our more detailed table for a comparison of the rating metrics.
Credit Tracker By Sector
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Weekly Sector Credit – Cultivation & Retail Credit Quality Stuck in a Holding Pattern
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- The credit quality of the cultivation and retail sector seems likely to remain stable for the next three quarters. Projected weakness in revenues and EBITDA margins relative to the corresponding periods last year threaten to increase metrics like Debt/2025 EBITDA, and we continue to believe that analyst estimates for the fourth quarter are biased on the high side.
- However, working capital and capex controls have stabilized liquidity measures, particularly the free cash flow-adjusted current ratio, which now has a median of 1.03x, indicating a theoretical ability to discharge all current liabilities without additional funding. We would like to see a bit more cushion, but the top 25% of the competitors are in pretty good shape, with measures over 1.8x.
- Financial flexibility remains reasonable, and the debt capital markets remain open, as evidenced by the $50M add-on financing just completed by Ascend Wellness, which falls below the top tier of credit quality.
Weekly Sector Credit – Cultivation & Retail Credit Quality Stuck in a Holding Pattern
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- The credit quality of the cultivation and retail sector seems likely to remain stable for the next three quarters. Projected weakness in revenues and EBITDA margins relative to the corresponding periods last year threaten to increase metrics like Debt/2025 EBITDA, and we continue to believe that analyst estimates for the fourth quarter are biased on the high side.
- However, working capital and capex controls have stabilized liquidity measures, particularly the free cash flow-adjusted current ratio, which now has a median of 1.03x, indicating a theoretical ability to discharge all current liabilities without additional funding. We would like to see a bit more cushion, but the top 25% of the competitors are in pretty good shape, with measures over 1.8x.
- Financial flexibility remains reasonable, and the debt capital markets remain open, as evidenced by the $50M add-on financing just completed by Ascend Wellness, which falls below the top tier of credit quality.
