Investing.com - Space Exploration Technologies Corp. received a BBB issuer credit rating from S&P Global Ratings on Thursday following the completion of its initial public offering, the ratings agency announced. S&P assigned a stable outlook to the Starbase, Texas-based company, reflecting expectations that SpaceX will maintain adjusted leverage below 2.0x despite aggressive investments across its business lines.
The rating balances SpaceX’s established launch and connectivity operations against risks in its nascent artificial intelligence business and significant capital requirements. S&P views the space segment as solid with modest medium-term growth potential and a deep competitive moat, while the connectivity business shows significant growth potential from enterprise and government clients. The AI business faces uncertainty around long-term prospects, massive capital investment needs, multiple well-capitalized competitors, and an unclear monetization path.
SpaceX operates three business segments that S&P considers interconnected through the company’s space launch capabilities. The company has achieved over 600 launches with its Falcon 9 vehicle at a 99% success rate and lowered launch costs more than 90% versus traditional single-use vehicles. The connectivity business has deployed over 10,000 low-Earth-orbit satellites and serves over 12 million global broadband subscribers as of June 4, 2026. The AI segment recently announced lease agreements with Anthropic and Alphabet (NASDAQ:GOOGL) for compute capacity at prices significantly above current market rates.
S&P forecasts elevated capital expenditure will drive negative free cash flow through 2029, with leverage expected to peak at 1.2x in 2028 before improving as connectivity revenues grow and AI monetization begins. The agency expects SpaceX will need to raise additional capital through debt and equity markets to cover deficits, though IPO proceeds will partially finance the shortfall. The company’s financial policy targets investment-grade ratings and commits to maintaining adjusted leverage in line with rating thresholds.
The news comes as Moody’s assigned a Baa1 rating to SpaceX with a stable outlook, while Fitch assigned a BBB+ rating with a stable outlook. S&P stated it could lower ratings if the company fails to achieve growth plans while continuing heavy investments that generate negative free cash flow without future earnings upside. An upgrade would require improved business profile performance and commitment to adjusted leverage below 1.5x with progress toward sustainable positive free cash flow.
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