Canary Wharf has suffered a further debt downgrade following an exodus of office workers in the wake of the Covid-19 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 the pandemic 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. 

HSBC is among the high-profile tenants planning on leaving Canary Wharf Credit: Pawel Libera/Getty

In response to the recent challenges, the group has been laying out plans to convert some buildings into lab space and become a life sciences hub. City grandee Sir Nigel Wilson, the former chief executive of Legal & General, took over as non-executive chairman in July. 

Fitch acknowledged that the “evolution of the campus from pure offices to mixed-use is continuing with more than 3,500 people now living on the Wharf”. 

It added that offices in the area are still much cheaper than in central London, attracting more life science tenants as financial services groups relocate or downsize. 

Canary Wharf’s latest pre-tax profits fell from £40m in 2022 to £28m last year, as the value of its overall property portfolio slipped 14.7pc to £6.8bn.

A string of corporates have confirmed plans to quit the district, including HSBC and magic circle law firm Clifford Chance. However, Barclays and Morgan Stanley are among those to have agreed to stay put.

Although the Elizabeth line has significantly improved the commute to Canary Wharf for many, there is still a reluctance among staff to attend the office full-time. 

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