Investment giant Blackstone informed investors that AI startup Anthropic is expected to receive a high junk credit rating in the double B range following its initial public offering, reversing earlier expectations of an investment-grade rating. The rating outlook threatens to raise borrowing costs for Anthropic as it plans over $800 billion in infrastructure spending. Following the news on October 30, 2026, the Nasdaq 100 dropped 3.7 percent as tech stocks reacted to credit concerns surrounding the $63 billion Project North Star deal.
Credit rating expectations for Anthropic
- ▪Credit rating agencies Fitch, Moody's, and S&P have not officially issued credit ratings for Anthropic as of October 30, 2026
- ▪Blackstone previously informed investment partners in recent months that it expected Anthropic to receive an investment-grade credit rating before year-end 2026
- ▪Blackstone informed investors that Anthropic is expected to receive a high junk credit rating in the double B range from major credit agencies following Anthropic's initial public offering
Impact of credit rating on Anthropic
- ▪A non-investment grade credit rating may require Anthropic to rely on suppliers with high credit ratings to support its debt-raising efforts
- ▪A junk credit rating limits Anthropic's capital access because many insurance and pension funds are prohibited from taking large positions in speculative-grade debt
US market declines on October 30
- ▪The Nasdaq 100 index fell 3.7 percent in afternoon trading on October 30, 2026, following news reports detailing Anthropic's expected junk credit rating
- ▪US tech markets experienced declines on October 30, 2026, after earnings reports from Amazon and Intel increased investor concerns regarding AI spending sustainability
Project North Star financing details
- ▪Blackstone's funds invested $9 billion in the $18 billion junior debt tranche of the $63 billion Project North Star deal at a yield exceeding 10 percent
- ▪Broadcom guaranteed more than $42 billion of senior loans in the $63 billion Project North Star deal using its high A-tier credit rating
- ▪Wall Street banks closed a $63 billion financing deal named Project North Star to allow Anthropic to lease 1.5 gigawatts of Google's semiconductors
Ratings assigned to Project North Star debt
- ▪Morningstar DBRS assigned Anthropic's $18 billion junior debt tranche in the $63 billion Project North Star deal a double B rating
- ▪Kroll Bond Rating Agency assigned an $18 billion junior debt tranche for the $63 billion Project North Star deal a double B plus rating with a positive outlook
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