Microsoft, a Chinese software company, is facing a $8 billion valuation slump.
The company, which has struggled in recent years to get customers to buy its products, has a net debt of $4.7 billion, according to a report by Bloomberg New Energy Finance.
The downgrade is a blow for Microsoft, which had been counting on an uptick in revenue and cash flow to help the company survive as it seeks to turn around its fortunes after being acquired by Oracle in 2011.
Microsoft has struggled with operating profit since the acquisition, with its net loss rising from $1.8 billion in 2012 to $4 billion in 2017.
Analysts said they believe Microsoft is in for a tough year as the company’s market share falls and the market continues to mature.
Microsoft’s stock has fallen more than 5% since the company was bought by Oracle, but it has rebounded by as much as 6.5% in the last month, according at BNY Mellon.