Credit Rating Upgrade Strengthens Bull Case for Snap Inc. (SNAP)

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On May 27, S&P Global Ratings upgraded its recognition standing connected Snap Inc (NYSE:SNAP). It raised the company’s issuer recognition standing to BB- from B+. The steadfast besides reviewed its issue-level ratings connected Snap’s unsecured notes, upgrading the standing to BB- from B+. It has a affirmative outlook connected the notes.

For the ratings upgrade, S&P Global Ratings cited the company’s little leverage amid improved operating and fiscal performance. Regarding leverage, the firm’s adjusted gross leverage for Snap dropped to astir 4.7x for the 12 months done March 2026, from 6.7x a twelvemonth ago. The steadfast further noted that Snap’s escaped operating currency travel to indebtedness accrued to 16.2% from 8.5% a twelvemonth ago.

Looking ahead, S&P Global Ratings sees Snap’s leverage dropping arsenic the topline continues to turn and profitability improves. It anticipates the company’s leverage dropping to astir 4.0x successful 2026 and going adjacent little to 2.5x successful 2027. The standing steadfast sees Snap’s fiscal show benefiting from expanding advertizing sales, maturation successful subscription business, and cost-cutting efforts.

Snap Inc (NYSE:SNAP) is simply a exertion and societal media company. It is the genitor of Snapchat, a ocular messaging app with astir a cardinal monthly users globally. The institution besides makes Spectacles AR glasses. Snap generates the bulk of its gross from advertizing sales.

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