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George Pearkes
@peark.es

Oh some more details on this: $SPCX claimed they've gotten IG ratings from the three major credit ratings agencies, and the $20bn bond deal would refinance an existing bridge loan due Sept '27 (no new borrowing, just terming out). I am, uh, extremely curious to see how they penciled an IG rating.

bloomberg.comSpaceX Bankers Preparing for Bond Sale of at Least $20 BillionBankers for Elon Musk’s SpaceX are preparing to hold calls with investors as soon as next week to discuss a potential bond offering on the heels of the company’s record IPO, according to people with k...
George Pearkes
@peark.es

"The company maintains conservative financial policies" is a ridiculous statement. There was definitely room for argument about adding SPCX earlier than normal to float-weighted indices. There isn't with this rating IMO. It just looks divorced from reality.

George Pearkes
@peark.es

Fitch too, same rationale. Unbelievable. *FITCH PUBLISHES SPACE EXPLORATION TECHNOLOGIES CORP.'S 'BBB+' IDR; OUTLOOK STABLE

George Pearkes
@peark.es

S&P Global rounds out the field. They have a proprietary newswire so I don't have quotes from the release but you can guess what it'll say. *S&PGR RATES SPACE EXPLORATION TECHNOLOGIES 'BBB'; OTLK STBL

8 reposts199 likes

ESG Hound
@esghound.com

the only truthful part is where they say that spacex has access to capital through equity markets, which is all that matters

Gee
@gdd9000.bsky.social

They did the same with the housing bubble in 2005, so this shouldn't come as any surprise. They are captured, no diff than it ever was.

Andrew Ross 🇺🇸🏴󠁧󠁢󠁳󠁣󠁴󠁿
@andrewross.net

Reminds me of the time I went to a preview of Inside Job and in the Q&A, securitization peeps from the banks & the ratings firms who were in the audience got into an open discussion about how the ratings teams were using the models that the banks had given them. This smells like that.