Blackstone Expects Anthropic Unlikely to Obtain Investment-Grade Rating After Listing

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Latest news shows that Blackstone Group has told investors that Anthropic may not be able to obtain an investment-grade credit rating immediately after going public.

People familiar with the matter revealed that the private capital giant told investors participating in Anthropic's latest $63 billion chip financing deal that it expects Anthropic to receive a rating in the higher tier of junk grade from major credit rating agencies after its IPO.

People familiar with the matter said that Blackstone had told investment partners in recent months that it expected Anthropic to obtain an investment-grade rating before the end of the year. This statement contradicts its previous guidance and may make it harder for this artificial intelligence lab to raise funds for its massive spending plans.

Anthropic submitted its listing application on Monday and plans to go public next month, which is expected to set a record for the largest IPO in history.

The artificial intelligence lab outlined a "bold but rational" plan in its prospectus: from now until 2045, spending on computing infrastructure will exceed $800 billion.

Obtaining an investment-grade credit rating is key to realizing these ambitions. This will enable Anthropic to borrow at lower interest rates to finance its artificial intelligence infrastructure projects.

The company currently holds more than $112 billion in cash and cash equivalents, and investors expect its IPO may raise about another $100 billion.

But according to feedback from major credit rating agencies, Blackstone's recent signal is that Anthropic is more likely to receive a rating of BB or above.

This rating will limit the range of funds Anthropic can access, because many insurance companies and pension funds are subject to investment restrictions and cannot hold large amounts of debt from junk-grade borrowers.

Therefore, the company may need to continue relying on higher-rated suppliers to support its debt financing.

A portfolio manager focused on U.S. technology stocks said: "The key is whether credit can be obtained. This really matters... If Anthropic cannot obtain an investment-grade rating, financing costs will rise, and that is good for no one."

Earlier this week, Wall Street banks completed the "Project North Star" transaction, providing financing for Anthropic to lease Google chips with a total power of 1.5 gigawatts.

Of this, more than $42 billion in senior loans is guaranteed by Broadcom. Broadcom participated in the joint development of these chips and has an investment-grade credit rating; another $18 billion in subordinated debt is supported by the rent paid by this artificial intelligence startup.

Senior debt is favored by institutional investors because, in the event of default, its repayment order takes priority over subordinated loans. Broadcom's relatively high credit rating within the A range was an important factor enabling Anthropic to obtain this financing.

It was previously reported that a Blackstone fund invested in $9 billion of the subordinated debt, with a yield of more than 10%, a rather generous return. Bankers serving Anthropic and its competitor OpenAI have also been lobbying the largest rating agencies, hoping they will grant investment-grade ratings to these two artificial intelligence labs after they go public.

The $18 billion in subordinated debt in "Project North Star" exposes lenders to more direct Anthropic credit risk. Kroll Bond Rating Agency (KBRA) assigned this portion of the debt a BB+ rating with a positive outlook.

By comparison, a similar transaction called "Project Big Sky" four months ago had a stable rating outlook, a slight improvement this time. People familiar with the matter added that Morningstar DBRS also assigned this portion of the debt a BB rating.

(Source: Cailian Press) Middle of the main text Embedded advertisement