Blackstone Warns Anthropic Likely to Get High Junk Rating After IPO
Blackstone has told investors in a $63 billion chip-financing deal that it expects Anthropic to receive a high junk credit rating, in the double-B range, after the AI lab's initial public offering, according to a Financial Times report. The forecast reverses Blackstone's earlier guidance that Anthropic would secure investment grade before 2027. Anthropic filed to go public earlier this week; both Anthropic and Blackstone declined to comment. A high junk rating would make fundraising costlier as Anthropic pursues heavy compute spending.
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Anthropic's Junk-Rated Debt Costs Two Days of Revenue Annually
Anthropic is preparing to go public as one of the world's most valuable companies while its debt carries junk ratings. Blackstone funds hold $9 billion of that debt at a yield above 10%, set at junk levels from the start. The financing structure involves a separate company buying $63 billion of Google AI chips and renting them to Anthropic, with Broadcom guaranteeing more than $42 billion and only about $18 billion depending on Anthropic alone. Blackstone took half of that slice. The extra interest versus a 5.75% rate amounts to roughly $380 million a year, about two days of Anthropic's $16.8 billion quarterly revenue. KBRA assigned a BB+ rating in June based on a risk score because Anthropic did not provide free cash flow or EBITDA. The post compares the situation to Tesla and Netflix, which carried junk debt before reaching investment grade.
Anthropic Expected to Get High Junk Credit Rating After IPO, FT Reports
Anthropic is expected to receive a high "junk" credit rating from rating agencies following its initial public offering, according to a Financial Times report. Blackstone, the anchor investor in a recent $63 billion deal to finance Anthropic's chips, reportedly told investors it now expects the AI lab to receive a "high" junk rating after its IPO, specifically in the double-B range, the top tier of speculative grade. This reverses Blackstone's earlier statement that the Claude maker would receive an investment-grade rating before 2027. Blackstone's forecast is only a prediction, but a high junk rating would make it harder and more costly for Anthropic to raise funds for its heavy spending, including large compute power deals over the past year that have worried investors. Anthropic filed to go public earlier this week. Anthropic and Blackstone declined to comment.
Anthropic Expected to Get High Junk Credit Rating After IPO, FT Reports
Anthropic is expected to receive a high "junk" credit rating from rating agencies following its initial public offering, according to a Financial Times report. Blackstone, the anchor investor in a recent $63 billion deal to finance Anthropic's chips, reportedly told investors it now expects the AI lab to receive a double-B range rating, the top tier of speculative grade. This reverses Blackstone's earlier guidance that Anthropic would secure an investment-grade rating before 2027. Anthropic and Blackstone declined to comment to TechCrunch. A high junk rating would make it more difficult and costlier for Anthropic to raise funds to sustain its heavy spending, including large compute power deals over the past year that have worried investors. Anthropic filed to go public earlier this week.
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Anthropic Expected to Get High Junk Credit Rating After IPO, Report Says
Anthropic is expected to receive a high 'junk' credit rating from rating agencies following its initial public offering, according to a Financial Times report. Blackstone, an anchor investor in a $63 billion deal to finance Anthropic's chips, reportedly told investors it now expects the AI lab to receive a 'high' junk rating, specifically in the double-B range, the top tier of speculative grade. This reverses Blackstone's earlier guidance that Anthropic would secure an investment-grade rating before 2027. Blackstone's forecast is only a prediction, but a high junk rating would make it more difficult and costly for Anthropic to raise funds to sustain its heavy spending, including large compute power deals over the past year that have worried investors. Anthropic filed to go public earlier this week. Both Anthropic and Blackstone declined to comment to TechCrunch.
Read sourceBlackstone warns Anthropic likely to get high junk credit rating after IPO
Blackstone has warned investors that Anthropic is likely to receive a high junk credit rating following its IPO, according to a just-in post. The warning attributes a negative credit-assessment outlook to the AI company as it moves toward public markets. The item does not specify the rating agency, timing, or the precise rating level, and no further details or responses from Anthropic were provided in the source.