Meta keeps AA- rating but S&P warns over surging AI costs

S&P Global Ratings has lowered its outlook on Meta, citing mounting AI costs and cash flow concerns. It changed Meta’s AA- credit rating from stable to negative. While the rating keeps the tech giant firmly in the upper echelon of companies, comfortably above the BB+ “junk” threshold, the negative tag serves as an official warning of potential downside risk. In its statement, S&P Global Ratings directly challenged Meta’s AI playbook, arguing that the social media giant has fewer paths to monetisation than its big tech rivals. It emphasised that it’s still unclear when the company’s infrastructure investments will begin generating enough revenue to cover rising expenses.

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