Moody’s Grants SpaceX Baa1 Rating Despite Years of Negative Free Cash Flow
Updated
Updated · Bloomberg · Jun 23
Moody’s Grants SpaceX Baa1 Rating Despite Years of Negative Free Cash Flow
3 articles · Updated · Bloomberg · Jun 23
Summary
Baa1 gave SpaceX an investment-grade credit rating last week even though Moody’s said the company has sustained negative free cash flow and faces years of heavy capital spending.
Moody’s took a more permissive view than some skeptics expected, extending investment-grade status to a company with a limited public financial record and ongoing cash burn.
Nvidia received the same Baa1 rating nearly a decade ago, but only after 16 years as a public company and with more than $1 billion in free cash flow, underscoring the contrast in Moody’s treatment.