🇺🇸S&P Global Ratings lowered Meta’s outlook from stable to negative, citing uncertainty over capital expenditure and free operating cash flow.

S&P Global Ratings changed Meta Platforms’ outlook from stable to negative, according to the supplied Telegram reports. The reported action is an outlook revision, not a downgrade of the AA- issuer credit rating referenced in S&P’s assessment.

S&P identified uncertainty over how long capital expenditure would remain elevated and how long free operating cash flow would remain negative. It also said Meta’s ability to monetize AI investment was more constrained than peers and questioned the visibility of expected spending reductions under its multiyear investment plans.

The agency forecast that Meta would fund its expected 2028 free operating cash-flow shortfall entirely with debt. It also identified the possibility of negative free operating cash flow continuing beyond 2028; these are S&P projections rather than observed financial results or an announced debt issuance.

S&P said its adjusted leverage measure could exceed 1.0 times as early as 2027, reaching its downgrade threshold for the AA- rating. The supplied material does not provide the detailed calculation underlying that adjusted leverage forecast.