S&P Cuts Meta's AA- Credit Outlook to Negative, Flags Negative Free Cash Flow and $135-$145B AI Capex

S&P Global Ratings affirmed Meta's AA- issuer credit rating but revised the outlook from stable to negative, citing 'uncertainty' about elevated capex and negative free cash flow. Meta now guides full-year capex to $135-$145 billion and S&P questioned its 'ability to monetize its AI investments' relative to peers. The agency warned it could downgrade outright if Meta's adjusted debt ratio climbs above 1.0x on a sustained basis and free cash flow stays negative past 2028.