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Moody's
2026-08-18 21:33:43

Moody’s says Nvidia’s capital allocation policy supports cash and credit profile

ChainCatcher reported that Moody’s expects Nvidia (NVDA.O) to maintain an exceptionally strong net cash position and credit metrics, supported by what it described as a balanced capital allocation policy. The source item was brief and did not include additional details on any rating action, outlook change, or specific financial figures. No further timeline, management comments, or supporting disclosures were provided in the original text. The report focused solely on Moody’s view that Nvidia’s capital allocation approach underpins the company’s net cash condition and credit indicators.

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Moody’s says Nvidia’s capital allocation policy supports cash and credit profile
AI financing
2026-08-16 01:28:00

Bond investors focus on roughly $70 billion in off-balance-sheet AI financing guarantees, with Nvidia seen as a potential backstop

Bond investors are examining about $70 billion in potential off-balance-sheet guarantee obligations tied to major AI companies, according to Bloomberg. The concern centers on "residual value support" structures used in chip financing, where a sponsor may have to cover losses if leased or financed hardware cannot be remarketed at sufficient value after a customer stops paying. Nvidia, which unveiled a $500 billion financing partnership plan this week, could end up providing tens of billions of dollars in residual value support for related debt deals. CEO Jensen Huang said the company can, depending on the project, provide support for up to 25% of a transaction. CreditSights analysts said the arrangement resembles Nvidia effectively selling a put option: cheap during an AI boom, but much more important if the sector turns sharply lower, customers default, and hardware values fall. Rating firms have also begun treating some of these structures as debt-like contingent obligations. Bloomberg said Meta has already used similar financing structures in about $27 billion and $13 billion of data center debt financings, while Broadcom provided most of the residual value support for a $35 billion AI chip financing tied to Anthropic. Moody’s warned that a rapid increase in such transactions could reduce Broadcom’s financial flexibility and pressure its credit profile.

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Bond investors focus on roughly $70 billion in off-balance-sheet AI financing guarantees, with Nvidia seen as a potential backstop
Moody's
2026-08-04 04:25:06

Moody’s lifts SK Hynix into A range for the first time, keeps outlook stable

Moody’s has upgraded SK Hynix’s long-term issuer rating and senior unsecured debt rating by one notch to A3 from Baa1, while keeping the outlook at stable. The move marks the first time the memory chipmaker has received an A-range rating from Moody’s since joining SK Group in 2012. It is also the first A-range rating SK Hynix has received from any of the three major international credit rating agencies. Moody’s said the upgrade reflects stronger competitiveness in the artificial intelligence memory market, along with better profitability and cash generation. The agency added that it expects SK Hynix to maintain high profitability and cash creation over the next 12 to 18 months, which should support further improvement in its financial profile. Moody’s also said the company has built up ample cash reserves, strengthening its ability to withstand downside risks tied to the semiconductor cycle. S&P and Fitch currently rate SK Hynix at BBB+, with S&P assigning a positive outlook and Fitch maintaining a stable outlook.

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Moody’s lifts SK Hynix into A range for the first time, keeps outlook stable