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

Credit-rating firm S&P Global Ratings changed its outlook on Meta’s AA- credit rating from stable to negative, citing rising artificial intelligence costs and concerns about cash flow. The rating stays above the BB+ junk threshold, but the negative outlook flags potential downside risk; Meta disputed the assessment, saying it disagrees about its AI monetisation capabilities. In its third-quarter report, Meta posted adjusted earnings of $7.40 per share and revenue of $64.6 billion, up 26% from a year earlier, while recording negative free cash flow of $2.12 billion for the first time. Meta projected full-year capital expenditures of $135 billion to $145 billion, and S&P projected those costs could exceed $225 billion by 2027.