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S&P cuts Meta’s credit outlook to negative
- •S&P kept Meta’s rating at AA- but changed its outlook from stable to negative, citing elevated AI spending and negative free cash flow.
- •Meta reported $2.12 billion in negative free cash flow for the third quarter, its first time in the red, and forecast full-year capital spending of $135 billion to $145 billion.
- •Meta plans to raise $95 billion for AI initiatives: $35 billion through underwritten public equity offerings and $60 billion through an at-the-market program.
- •S&P said it was uncertain when AI investments would generate material revenue and whether Meta would curb spending as previously anticipated. Meta disputed the agency’s assessment.