Anthropic Received Highest Junk Credit Rating Ahead of Expected IPO

Anthropic, an artificial intelligence company, received a BB+ issuer credit rating from Kroll Bond Rating Agency (KBRA) in June 2026, with a positive outlook[1][9]. This rating, which is the highest speculative-grade tier, places Anthropic one notch below investment grade[1][9][10]. The assessment was connected to a $35 billion chip financing deal led by Apollo Global Management, with participation from Blackstone and various banks[1][9].

The rating provides an initial public credit assessment for Anthropic, which had no debt on its balance sheet as of June 30, and previously relied on business partners and special purpose vehicles for financing[7]. Achieving an investment-grade rating would broaden access to institutional investors and reduce future borrowing costs, which is critical given the company's substantial capital requirements for AI infrastructure[7][9]. Investors have adjusted valuation expectations for Anthropic's upcoming November IPO, from an initial $2 trillion down to approximately $1.5 trillion, following recent financial disclosures and concerns over slowing revenue growth[8][15][16][17].

What the records show

KBRA assigned the BB+ rating in June 2026, the first publicly reported credit assessment for Anthropic[1][9][10]. This rating applied to approximately $4.4 billion of subordinated debt within the $35 billion chip financing package[9]. Investors in this subordinated debt face Anthropic's credit risk, resulting in an approximate yield of 8.5%[9]. Broadcom guarantees the remaining senior financing, which carries a 5.75% yield[9]. KBRA based its assessment on limited financial disclosures from Anthropic, including revenue, adjusted operating income, and internal forecasts[3][9]. Analysts used estimates and a “risk score” approach instead of full financial models, as Anthropic did not provide free cash flow or earnings before interest, taxes, depreciation, and amortisation (EBITDA) figures[3][9]. The company has significant future capital commitments, planning to spend at least $518 billion on data centers and infrastructure over the next decade[12][14][24]. Roughly 80% of these commitments are non-cancelable or require payment regardless of usage[14][26]. Wall Street banks are reportedly arranging a separate $60 billion financing plan for Anthropic to acquire more custom AI chips, including $18 billion in subordinated debt linked to infrastructure developed with Google and Broadcom[6][9]. Anthropic is also considering issuing up to $42 billion in convertible notes for semiconductor leasing, though KBRA was not provided with the terms of these proposed notes[9].

The timeline

KBRA assigned Anthropic's BB+ rating in June 2026, which was first reported on October 16, 2026[1][9]. Anthropic's investor day on October 14 saw investors discuss a revised IPO valuation[16]. The company is expected to conduct its initial public offering in November[9]. Investment banks, including Morgan Stanley and Goldman Sachs, are lobbying major rating agencies like S&P, Moody's, and Fitch on behalf of Anthropic and OpenAI to secure investment-grade ratings after their IPOs[4][5][7][13][18][23].

What changed and for whom

The BB+ rating signals Anthropic's proximity to investment-grade status, which, if achieved, would lower borrowing costs and expand access to a wider pool of institutional investors[7][9]. The $35 billion financing deal, with its 8.5% yield on subordinated debt, reflects the market's assessment of Anthropic's credit risk without an investment-grade rating[9]. Investors adjusted Anthropic's expected IPO valuation down by 25%, from $2 trillion to $1.5 trillion, due to slowing revenue growth, impacting potential IPO proceeds[8][15][16][17]. The company's significant, non-cancelable infrastructure commitments represent substantial financial obligations for the coming decade[14][26].

What Anthropic has said publicly

KBRA and Anthropic declined to comment on the rating[6].

What we could not confirm

We could not confirm the specific terms of the proposed $42 billion in convertible notes for semiconductor leasing[9]. The full financial models and detailed financial metrics, such as free cash flow and EBITDA, that were not disclosed to KBRA for their assessment, remain unconfirmed[3][9].