No. of Recommendations: 3
Anthropic faces higher borrowing risk after Blackstone flags junk rating post-IPO
As first reported by Financial Times, Blackstone has told investors in Anthropic's latest $63 billion chip financing deal that the AI start-up is expected to receive a high junk rating from major credit rating agencies after its initial public offering, according to people familiar with the matter.
That marks a change from Blackstone's earlier guidance to investment partners in recent months that Anthropic was expected to obtain an investment-grade rating before year-end. People familiar with the discussions say Blackstone has more recently indicated that a double B range rating or better is now more likely, based on feedback it has received from major credit agencies.tradersunion.com - Anthropic junk rating IPO riskMicrosoft is the only hyperscaler not forecast to dip into negative FCF in the next year
Microsoft (MSFT) stands alone among major hyperscalers as the only one not forecast to dip into negative free cash flow territory over the next twelve months, according to BofA Global Research Equity and Quant Strategy.
Amazon (AMZN), Alphabet (GOOGL), (GOOG), Oracle (ORCL), and Meta (META) are all expected to fall into negative free cash flow by 2027, with BofA Global Research projecting these hyperscalers' next-twelve-month free cash flow estimates will drop below negative $25,000 between 2026 and 2028.seekingalpha.com - Microsoft is the only hyperscaler not forecast to dip into negative fcf in the next yearHere's a thought. All these USian companies are racing to be the biggest, badest, AI platform. What if they all lose, to a competitor in China, South Korea, or Japan? What if all these big US companies see their prospects go poof, and the money interests come for repayment of the Billions, if not Trillions, of dollars they borrowed?
Steve
