S&P Cuts Meta Credit Outlook to Negative Over AI Spending

Oct 31, 2026
S&P Global lowered Meta's credit outlook from stable to negative, citing rising debt and uncertainty about returns from its AI spending.

S&P Global Ratings cut the outlook on Meta Platforms's AA- credit rating to negative from stable on Friday, citing heavy AI spending, Bloomberg reported, according to The Next Web. "Meta's ability to monetize its AI investments is more limited than that of its peers," S&P said.

S&P expects Meta's leverage, which measures debt against earnings, to exceed 1.0 times as soon as 2027. It stood at about 0.1 times in 2025. The agency said Meta has fewer options to earn revenue from AI infrastructure than Amazon, Microsoft and Google because it does not yet operate a cloud computing business.

Meta recorded a free cash outflow of $2.12 billion in the third quarter and has $825 billion in commitments. It also began a $35 billion share sale to help fund its infrastructure expansion. "We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities," said Meta spokesperson Kamran Mumtaz.

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