IPO
SpaceX Gets Investment-Grade Rating From Top Agencies
SpaceX was awarded investment-grade ratings from Moody’s, Fitch and S&P Global Ratings when its Nasdaq debut drove the company valuation above $2 trillion. Moody’s rated Baa1, Fitch BBB+, and S&P BBB, all with stable outlooks. The ratings are consistent with both a speculative grade (or junk) rating for SpaceX’s debt. The firm said the company’s space and connectivity businesses are solid, but it flagged its AI segment as an uncertainty given large capital requirements and competition. Shares ended lower after shedding some post-IPO gains during the day.
Three major rating agencies upgraded SpaceX’s credit ratings to investment-grade as the company’s valuation rose above $2 trillion following its IPO.
Moody’s issued a Baa1 rating, Fitch Ratings assigned it a BBB+ and S&P Global Ratings assigned it a BBB. These three agencies gave a stable outlook as well. The ratings came out on Thursday following SpaceX’s Nasdaq debut last week.
SpaceX Receives Investment-Grade Ratings
According to Moody’s, Fitch and S&P, SpaceX debt is rated in the investment-grade category. Among the agencies, investment-grade ratings usually point to low credit risk and adequate ability to meet financial commitments.
The ratings come as SpaceX pushes on with its artificial intelligence expansion plans in a competitive environment. All three agencies have assigned a stable outlook.
Last week, SpaceX went public on the Nasdaq and reportedly attained a valuation of $2 trillion. Shares of the company surged in their first two days of trading before relinquishing some of their strength. SpaceX shares slipped 1.1% in extended trading Thursday, after the stock fell nearly 4% in regular-hours trade before closing.
Despite Strong Core Businesses, S&P Flags AI Uncertainty
In evaluating the overall strength of SpaceX’s space and connectivity businesses, S&P Global Ratings said it views them as strong. But the agency also said uncertainty surrounds the company’s AI segment, due to high capital demands and competition. The comments came as the company continues its expansion into AI, following an IPO that received much attention because of the valuation and plans.
FAQs
What ratings did SpaceX receive?
Moody’s Baa1, Fitch BBB+, S&P BBB;
What outlook did the agencies give?
Three agencies rated a stable outlook.
What did S&P have to say about SpaceX’s businesses?
S&P describe SpaceX´s space and connectivity businesses as strong.
What concern did S&P highlight?
The AI segment is fraught with high capital requirements and competition, leading S&P to consider it the least certain of the three areas.
Source: Reuters
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