Economy / Markets
S&P cuts its Meta outlook to negative over AI cash burn
S&P Global Ratings lowered its outlook on Meta's AA- credit rating to negative from stable on Friday, citing negative free operating cash flow and spending it expects to stay elevated. Meta has guided to $135bn-$145bn of capital expenditure this year after a $2.12bn free-cash-flow deficit in the third quarter. S&P forecasts deficits of $39bn in 2026 and $71bn in 2027, and says leverage could exceed 1.0x as early as 2027. Meta says its credit profile remains strong.