S&P Changes Meta’s Credit Outlook to Negative on Capital Spending

S&P Global Ratings changed Meta’s credit outlook from stable to negative, citing uncertainty tied to the company’s high capital spending as it faces a projected 2028 free operating cash flow shortfall.

S&P expects Meta to rely solely on debt financing in 2028 to cover the projected gap in free operating cash flow (FOCF).

The outlook shift also reflects market concerns that continued capital spending, particularly on AI infrastructure, could pressure Meta’s cash flow and financial position.