{"id":90348,"date":"2025-10-28T10:49:40","date_gmt":"2025-10-28T08:49:40","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=90348"},"modified":"2025-10-28T09:50:49","modified_gmt":"2025-10-28T07:50:49","slug":"sp-assigns-junk-bond-rating-to-strategy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sp-assigns-junk-bond-rating-to-strategy\/","title":{"rendered":"S&P Assigns ‘Junk’ Bond Rating to Strategy"},"content":{"rendered":"

S&P Global Ratings has assigned<\/a> a B- credit rating to Strategy, categorizing its securities as ‘junk’ bonds<\/span>.\u00a0<\/p>\n

The decision was influenced by the excessive concentration of assets by Michael Saylor<\/a> in Bitcoin, while having debt obligations in US dollars. S&P also noted Strategy’s low dollar liquidity and negative risk-adjusted capital.\u00a0<\/p>\n

The agency emphasized that a rating upgrade is “unlikely in the next 12 months.” To improve its rating, the company needs to enhance financial stability, reduce reliance on convertible debt, and maintain broad access to capital markets even during downturns in the leading cryptocurrency’s price.<\/p>\n

Matthew Sigel, head of digital asset research at VanEck, explained that “Strategy can service its debt for now but is vulnerable to shocks.”\u00a0<\/p>\n

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\ud83d\udea8Strategy Inc Assigned ‘B-‘ Issuer Credit Rating; Outlook Stable at S&P<\/p>\n

That\u2019s high-yield territory. Able to service debt for now, but vulnerable to shocks.<\/p>\n

S&P data: B issuers carry ~15% 5-yr default risk. https:\/\/t.co\/ingZu6DRmH<\/a> pic.twitter.com\/RrHOWYmzVG<\/a><\/p>\n

\u2014 matthew sigel, recovering CFA (@matthew_sigel) October 27, 2025<\/a><\/p><\/blockquote>\n