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
Moody’s assigned SpaceX a Baa1 investment-grade rating last week, putting Elon Musk’s rocket company in the same broad tier as more established corporate borrowers.
The rating drew skepticism because SpaceX has only a limited public financial record, has posted sustained negative free cash flow and still faces years of heavy capital spending.
Moody’s gave Nvidia the same Baa1 rating nearly a decade ago, but only after 16 years as a public company with more than $1 billion in free cash flow and relatively light debt.
That contrast highlights how quickly SpaceX won investment-grade status despite thinner disclosure and a cash profile that remains under pressure from expansion.