S&P cuts Akamai to junk-grade BB+ over debt-funded $11.6 billion Anthropic compute deal

S&P Global Ratings downgraded Akamai Technologies from BBB- to BB+ after its cloud contract with Anthropic expanded to $11.6 billion over seven years, the agency stated in an announcement. The rating agency said Akamai's plan to fund related capital spending with debt raised its financial risk beyond the level appropriate for its previous rating.

Akamai announced two- and five-year convertible note offerings to help finance the contract. The agreement requires an estimated $5.5 billion in capital spending, including $1.7 billion in the fourth quarter of 2026, $3.1 billion in 2027 and $700 million in 2028.

S&P expects Akamai's adjusted leverage to finish 2026 just below 4x and rise slightly above that level in 2027 before falling below 3x in 2028. It assigned a stable outlook, citing a path for leverage to decline after the main investment period.

The agreement covers 75 to 80 megawatts of dedicated compute and includes an option for a further $9 billion. S&P estimated a 12% internal rate of return and a 5.5-year payback on the contract, and said Anthropic could account for about a quarter of Akamai's revenue by 2028 at full ramp.