S&P cuts Meta's outlook to negative on AI spending concerns
10/31/2026 — 10/31, 07:16·2 sources (all)·2 reports (all)
Key takeaways
- S&P lowered its outlook on Meta's AA- credit rating from stable to negative, citing AI spending that may take a long time to pay off and pro…
- Meta disagrees.
Background & analysis
On 2026-10-31, Bloomberg Technology reported that S&P Global Ratings had lowered the outlook on Meta's AA- credit rating to negative on the previous Friday, citing heavy spending tied to artificial intelligence as a source of growing pressure on the company's balance sheet. The Next Web, citing Bloomberg, added that the outlook had previously been stable, that the downgrade reflected expectations that AI spending could take a long time to pay off, and that S&P expects Meta's leverage to climb above 1.0x as soon as 2027, up from about 0.1x last year. S&P also argued that Meta lacks a cloud business and would have weaker monetization of its AI investments than peers. Meta said it disagreed with that assessment. No further developments were reported, so the matter now stands with the outlook lowered and S&P's forecasts contested by the company.
AI-generated from 2 reports · updated 2 hours ago
Latest turnS&P lowered its outlook on Meta's AA- credit rating to negative from stable, citing AI spending that may be slow to pay off, Bloomberg reported via The Next Web. The agency expects leverage to rise above 1.0x as soon as 2027 from about 0.1x last year, noting Meta lacks a cloud business to monetize AI compute; Meta disagrees.
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S&P lowered its outlook on Meta's AA- credit rating to negative from stable, citing AI spending that may be slow to pay off, Bloomberg reported via The Next Web. The agency expects leverage to rise above 1.0x as soon as 2027 from about 0.1x last year, noting Meta lacks a cloud business to monetize AI compute; Meta disagrees.
The Next WebAI score 61S&P Global Ratings lowered its outlook on Meta's AA- credit rating to negative on Friday, citing balance-sheet pressure from elevated spending tied to artificial intelligence, Bloomberg Technology reported.
Bloomberg TechnologyAI score 59
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