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SoftBank credit risk hits four-year high over AI debt fears
Japanese investment firm SoftBank Group’s five-year credit default swap spread rose 22 basis points to 466 basis points on November 6, its widest level since October 2022, Markit data showed.
The move reflected investor concern about AI profitability and SoftBank’s rising debt.
SoftBank has a reported US$64.6 billion investment in OpenAI.
It also issued US$11.1 billion in bonds and obtained an upsized US$11.9 billion loan to help fund its OpenAI investment, showing that part of the exposure is debt-funded.
Fitch Ratings assigned SoftBank Group a BB+ rating with a stable outlook.
SoftBank also has joint plans with OpenAI and Oracle for five data centers under the broader Stargate infrastructure initiative.
🔗 Source: Reuters
