Blackstone warns Anthropic may get a junk rating after its IPO
Blackstone has told investors Anthropic may receive a high-junk credit rating after going public, a shift from its earlier expectation of an investment-grade rating. That could limit the pool of lenders available to fund the AI company’s planned infrastructure spending, even as it prepares for an IPO.1
This brief is being refreshed as the reporting or market odds change.
TL;DR
- The reported shift in Blackstone’s expectations underscores that a high-profile IPO would not automatically give Anthropic investment-grade credit or access to the broadest borrowing pool.1
- Market pricing points to expectations of a very high IPO valuation, but the financing structure already relies on Broadcom’s credit standing to support a substantial portion of Anthropic-related borrowing.1M4
Still to come
- The forthcoming IPO will bring the question of Anthropic’s formal credit rating into focus. Fitch, Moody’s and S&P had not issued official ratings, while Blackstone’s reported expectation was based on guidance it had received from major agencies.
People familiar with the matter told the Financial Times that Blackstone, an anchor investor in Anthropic’s $63 billion chip-financing deal, recently indicated that a double-B rating or higher was more likely, based on guidance from major credit agencies. Blackstone had told its investment partners in recent months that it expected Anthropic to receive an investment-grade rating before year-end. Fitch, Moody’s and S&P have not officially rated Anthropic.1
The distinction matters because investment-grade borrowers can access a broader pool of capital, while some insurance and pension funds are restricted from holding large positions in junk-rated debt. Anthropic has more than $112 billion in cash and equivalents, but its prospectus outlines plans to spend more than $800 billion on computing infrastructure through 2045. The report says a lower rating could leave the company relying more on suppliers with strong credit ratings to support future borrowing.1
The North Star financing shows how that support can work: more than $42 billion in senior loans is guaranteed by investment-grade Broadcom, while $18 billion in junior debt is backed by Anthropic’s lease payments. That junior debt received a double-B-plus rating with a positive outlook from Kroll Bond Rating Agency and a double-B rating from Morningstar DBRS. Those ratings apply to the debt, not an official company rating from the three largest agencies.1
The IPO markets offer a separate measure of expectations about Anthropic’s scale: as of October 31, they implied roughly 63% odds that its IPO valuation would fall between $1.50 trillion and $1.75 trillion, with the market’s deadline set at December 31, 2027. That valuation expectation does not settle the credit-rating question, which will matter for the cost and range of financing available for the company’s investment plans.1M4
Sources
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Anthropic may not secure investment-grade rating after IPO, Blackstone tells investors · Financial Times News · Oct 30
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