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'Bond King' Jeffrey Gundlach Slams Anthropic’s Investment-Grade Rating Bid: ‘Any Rating Agency’ Giving It Should Be ‘Shut Down’
DoubleLine Capital founder Jeffrey Gundlach blasted Anthropic’s pursuit of an investment-grade credit rating, calling the AI developer’s ambitions "simply absurd.”
Blackstone Warns Anthropic May Remain Speculative
"Anthropic hoping to get an investment-grade bond rating is simply absurd," the investor known as the "Bond King" wrote on X. "Any rating agency that might give such a rating should be investigated/shut down immediately."
Gundlach’s remarks follow reports that Blackstone now expects the Claude developer to secure a high speculative-grade, or "junk," rating after its planned initial public offering, rather than the investment-grade status it previously anticipated. Reuters, citing a Financial Times report, said the revised outlook raises questions about Anthropic’s borrowing costs as its bankers pursue cheaper financing for ambitious AI projects.
The concerns are not entirely theoretical. Kroll Bond Rating Agency assigned Anthropic a BB+ issuer rating in June, one notch below investment grade, in connection with a $35 billion chip-financing arrangement. The assessment differs from a future public rating by Moody’s, S&P or Fitch, whose investment-grade classifications could open the door to more pension and insurance capital.
Anthropic’s Massive Spending Raises Credit Questions
Anthropic’s October 26 Securities and Exchange Commission filing shows why that distinction matters. Its $15 billion revolving credit facility remains collateralized until at least two of those three agencies grant investment-grade status. The company reported $16.29 billion in first-half revenue and $693 million in operating losses, highlighting both its extraordinary expansion and continuing costs.
Reuters reported that Anthropic has committed more than $600 billion to computing arrangements over roughly a decade. Blackstone and major banks also announced a separate $63 billion financing package to buy Broadcom Inc. (NASDAQ:AVGO) chips for lease to Anthropic, with Broadcom supporting the senior loans. Moody’s warned that repeated transactions could increase Broadcom’s own credit exposure as AI infrastructure spending accelerates.
Other Bond Experts Flag Wider Risks
Other credit specialists have urged caution across AI lending. Deutsche Bank strategist Jim Reid told Reuters mid-October that moving from cash-funded spending to debt-financed investment means markets must "increasingly respect the credit price action."
Moody’s separately warned that weaker private-credit borrowers could struggle to refinance loans maturing from 2027 through 2029. For Anthropic, the debate centers on whether its rapidly rising sales can keep pace with long-term financial commitments.
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