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

By Drooid · Oct 31, 2026 · How we work

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Summary

S&P Global Ratings lowered Meta Platforms’ credit outlook to negative on October 30, 2026.
S&P cited massive AI-related capital spending and rising leverage as reasons for the downgrade.
S&P projects Meta’s capital expenditures will reach $140 billion in 2026 and $225 billion in 2027.
Meta spokesperson Kamran Mumtaz said the company disagrees with S&P’s view and sees strong product opportunities.

History

In 2018 S&P Global Ratings cut General Electric’s credit rating as the conglomerate grappled with a $27.2 billion pension liability and a leverage ratio above 3.5-to-1, prompting its removal from the Dow Jones index in June 2018. Meta Platforms now faces a similar outlook shift, with AI-related capex projected at $140 billion and leverage moving toward 3-to-1, echoing the financing strain that reshaped GE’s corporate structure.

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In 2018 S&P Global Ratings cut General Electric’s credit rating as the conglomerate grappled with a $27.2 billion pension liability and a leverage ratio above 3.5-to-1, prompting its removal from the Dow Jones index in June 2018. Meta Platforms now faces a similar outlook shift, with AI-related capex projected at $140 billion and leverage moving toward 3-to-1, echoing the financing strain that reshaped GE’s corporate structure.

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