Meta’s AI spending has cost its rating? S&P downgrades AA- credit outlook to Negative as ‘ability to monetize limited’

S&P Global Ratings on Friday downgraded Meta’s AA- credit rating to Negative, in an “early step” amid growing pressure from the tech giant’s increased artificial intelligence (AI) related expenditures, Bloomberg reported.

S&P in a statement said the AI spending related strain on Meta’s balance sheet and rising leverage (earnings relative to debt) were key factors that led to the decision, it added.