S&P lowers Meta's rating outlook to negative on uncertainty over AI investment returns and capital expenditure, maintains "AA-" rating.

On October 30 local time, S&P Global Ratings revised its outlook on Meta Platforms' long-term issuer credit rating to "negative" from "stable," while affirming the "AA-" rating. S&P expects Meta's capital expenditures to rise from about $140 billion in 2026 to more than $225 billion in 2027, with free operating cash flow (FOCF) likely to remain negative from 2026 to 2028; if the commercialization of AI investments falls short of expectations, the company's adjusted leverage ratio could rise to 1.1x in 2027, exceeding the 1.0x downgrade threshold corresponding to the "AA-" rating.