S&P Revises SoftBank Group's Outlook to Stable on Arm Holdings' Price Increase

MT Newswires Live07-16 14:42

S&P Global Ratings on Thursday changed the outlook on SoftBank Group (TYO:9984) to stable from negative while maintaining its BB long-term issuer credit rating.

The company saw a significant turnaround in its listed assets and loan-to-value ratios to above 60% and about 20% and 25%, respectively, after an increase in Arm Holdings' stock price, S&P said.

Arm's shares make up more than 40% of the group's invested assets, S&P said.

The rating agency expects the company's investment assets to maintain attributes and financial ability within its ratings' limits even with continued volatility in Arm's price.

Investment concentration in large recipients limits the group's creditworthiness, although a bigger share in OpenAI could narrow concentration risk, the rating agency said.

The company will maintain its aggressive stance on AI investments that range from acquisitions to equity stakes and data center projects, S&P said.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment