Technology4 sources
S&P Lowers Meta's Credit Rating Outlook to Negative
- S&P Global Ratings changed Meta's credit rating outlook from stable to negative.
- The change is due to Meta's increased spending on artificial intelligence.
- S&P expects Meta's leverage to rise above 1.0x by 2027.
- Meta disagrees with S&P's assessment and outlook revision.
- Concerns about Meta's free cash flow and capital expenditures also contributed to the downgrade.
Timeline
Meta Has Given Back All of Its Muse Advance
Meta has returned all of its advance for the Muse project, potentially impacting its financial stability.
S&P Revises Meta Outlook to Negative
S&P Global Ratings revised its outlook on Meta Platforms Inc.'s AA- credit rating to negative due to elevated spending on AI and concerns about free cash flow.
Latest
Meta's Leverage Expected to Rise
S&P expects Meta's leverage to rise above 1.0x as soon as 2027, up from about 0.1x last year, due to heavy AI spending.
Articles (4)
The Next Web·
S&P turns negative on Meta as AI spending eats into its cash
CNBC·
Meta outlook revised downward by S&P on cash flow and capex concerns
Bloomberg·
Meta’s Rating Outlook Cut to Negative by S&P on AI Spending
Barron's·
Meta Has Given Back All of Its Muse Advance. Shares Could Face More Pressure Ahead.