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Anthropic faces potential junk credit rating after IPO, Blackstone warns

Blackstone has warned investors that Anthropic is likely to receive a below-investment-grade credit rating in the double-B range following its IPO, according to the Financial Times.

Anthropic company logo
Image: @wallstengine

Anthropic is expected to receive a below-investment-grade "high junk" credit rating in the double-B tier after going public, Blackstone told investors, according to a report from the Financial Times. The warning reverses Blackstone's earlier guidance that had anticipated an investment-grade rating for the artificial intelligence company by year-end.[1][2][3][4]

A junk rating could increase Anthropic's borrowing costs and restrict access to institutional capital, including pension funds and insurers bound by mandates against holding junk-rated debt. Major rating agencies Moody's, S&P, and Fitch have not yet formally issued credit ratings for the company.[1][2]

The prospect of a lower rating comes as Anthropic prepares for extensive capital outlays. The company's IPO prospectus outlined plans to spend more than $800 billion on computing infrastructure through 2045, even as it reportedly holds over $112 billion in cash and could raise another $100 billion through its public listing.[1][2]

Blackstone is currently participating in Anthropic's $63 billion Project North Star financing package to lease 1.5 gigawatts of Google AI chips. In that transaction, more than $42 billion of senior loans are guaranteed by Broadcom, while $18 billion in junior debt is backed by Anthropic's lease payments. Blackstone funds invested $9 billion into the junior debt at yields above 10%. Without an investment-grade rating of its own, Anthropic may have to keep relying on stronger corporate partners to anchor future debt financing.[1][2]

Key facts

  • Blackstone informed investors that Anthropic is likely to receive a BB-range, below-investment-grade credit rating after its IPO, reversing previous expectations of an investment-grade rating.
  • Credit rating agencies Moody's, S&P, and Fitch have not formally issued ratings for Anthropic.
  • Anthropic's IPO prospectus laid out plans to spend more than $800 billion on computing infrastructure through 2045.
  • Anthropic reportedly holds over $112 billion in cash and could raise another $100 billion through its IPO.
  • Anthropic's $63 billion Project North Star financing supports leasing 1.5 GW of Google AI chips, with over $42 billion in senior loans guaranteed by Broadcom and $18 billion in junior debt backed by Anthropic lease payments.
  • Blackstone funds invested $9 billion in Project North Star junior debt, earning yields exceeding 10%.

Sources · 3 sources

  1. WS

    Wall St Engine@wallstenginePost on X ·

    ANTHROPIC EXPECTED TO RECEIVE A “HIGH” JUNK CREDIT RATING AFTER IPO: FT Blackstone has told investors Anthropic is likely to receive a credit rating in the double-B range after going public, below investment grade, reversing its earlier expectations for an investment-grade rating by year-end. The lower rating could make it more expensive for Anthropic to finance its massive AI infrastructure expansion, while limiting access to pension funds and insurers that face restrictions on investing in junk-rated debt. The warning comes as Blackstone participates in Anthropic's $63B financing deal, known as Project North Star, to support the leasing of 1.5 GW of Google's AI chips. Under the deal: • More than $42B in senior loans are guaranteed by Broadcom $AVGO. • Another $18B in junior debt is backed by Anthropic's lease payments. • Blackstone's funds invested $9B in junior debt, earning yields above 10%. Anthropic's IPO prospectus outlined plans to spend more than $800B on computing infrastructure through 2045. Without an investment-grade rating, Anthropic may need to continue relying on financially stronger partners to support its borrowing. The major credit agencies, Moody's, S&P and Fitch, have not yet formally issued ratings for Anthropic, per FT.

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  2. *B

    *Walter Bloomberg@DeItaonePost on X ·

    $ANT - ANTHROPIC FACES JUNK CREDIT RATING RISK DESPITE PLANNED MEGA-IPO Blackstone has warned investors that Anthropic may receive a below-investment-grade credit rating following its IPO, reversing earlier expectations, according to the Financial Times. The AI company is reportedly expected to receive a BB-range rating, potentially raising borrowing costs and limiting access to institutional capital. Anthropic plans to spend over $800 billion on computing infrastructure through 2045, while its $63 billion Project North Star financing relies heavily on guarantees from investment-grade-rated Broadcom. The company reportedly holds over $112 billion in cash and could raise another $100 billion through its IPO. Source: Financial Times

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  3. FT

    Financial Times@FTPost on X ·

    Anthropic may not secure investment-grade rating after IPO, Blackstone says https://t.co/QAgBmF6NXG

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  4. FT

    Financial Times@FTPost on X ·

    Breaking news: Blackstone told investors Anthropic may not receive an investment-grade rating immediately after going public, a reversal from its previous guidance that would complicate the AI lab’s ability to finance its massive spending. https://t.co/HYNtZHDGBC https://t.co/xX7YzxX7Ya

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