SpaceX has secured investment-grade credit ratings from Moody's, Fitch, and S&P Global, just days after its record-breaking IPO that raised approximately $85.7 billion, marking the largest initial public offering in history. Moody's assigned SpaceX a Baa1 long-term issuer rating with a stable outlook, highlighting the company's 'exceptional franchise strength' as the leading orbital launch provider and operator of Starlink, the largest low Earth orbit satellite broadband network. This rating is notably higher than Tesla's Baa3 rating, indicating SpaceX's strong position in the market despite the recent decline in its share price.
Elon Musk, the CEO of SpaceX, acknowledged the rating on social media, suggesting that Tesla's credit rating is undeservedly low. The ratings are expected to facilitate cheaper borrowing for SpaceX as it embarks on a significant expansion, particularly in its AI initiatives. However, Moody's report also outlines potential risks, including the heavy execution demands of SpaceX's large-scale AI projects, which are characterized by high capital intensity and sustained negative free cash flow.
Additionally, the agency pointed to the company's reliance on the next-generation Starship V3 vehicle, warning that any technical setbacks or delays could impact long-term growth. Governance risks were also noted, stemming from SpaceX's concentrated voting power and the limited oversight from its board, which is heavily reliant on Musk. Despite these challenges, Moody's forecasts strong revenue and earnings growth through 2028, driven by the performance of Starlink and the anticipated success of its upcoming projects.