"The rating action, which has not previously been reported, shows Anthropic is close to achieving the investment-grade status that would allow the start-up to lower its borrowing costs and tap a wider pool of institutional investors including life insurance companies and pension funds.
Bankers for Anthropic and rival OpenAI have lobbied the largest rating agencies to grant the AI labs investment-grade ratings once they go public."
The fact that the only rating published is ‘junk’, and that it was from a small agency tells us quite a lot. Given the fact that Anthropic (or its representatives) likely ‘shopped’ for a rating means that this was the best anyone was willing to give them, and that the larger agencies probably refused to rate them without more information. I would have been surprised if the bankers hadn’t lobbied for the highest rating possible, as higher ratings increase their profits from the IPO.
The whole point is to slowly build credibility, starting with easily $wayed small ratings entities, then launder that credibility into a slightly larger one, rise and repeat until financial disaster.
From the article:
"The rating action, which has not previously been reported, shows Anthropic is close to achieving the investment-grade status that would allow the start-up to lower its borrowing costs and tap a wider pool of institutional investors including life insurance companies and pension funds.
Bankers for Anthropic and rival OpenAI have lobbied the largest rating agencies to grant the AI labs investment-grade ratings once they go public."
The fact that the only rating published is ‘junk’, and that it was from a small agency tells us quite a lot. Given the fact that Anthropic (or its representatives) likely ‘shopped’ for a rating means that this was the best anyone was willing to give them, and that the larger agencies probably refused to rate them without more information. I would have been surprised if the bankers hadn’t lobbied for the highest rating possible, as higher ratings increase their profits from the IPO.
The whole point is to slowly build credibility, starting with easily $wayed small ratings entities, then launder that credibility into a slightly larger one, rise and repeat until financial disaster.
Anthropic is planning an IPO and this is information investors would like to have.