Investing.com -- Moody's Ratings assigned a Baa1 long-term issuer rating to Space Exploration Technologies Corp. with a stable outlook. The rating reflects considerations including balanced financial policies and governance transparency consistent with public company standards.

The rating recognizes SpaceX's position as the world's leading orbital launch provider and operator of Starlink, the largest low earth orbit satellite broadband network. Starlink has become the primary cash flow generator for the company, supporting margin expansion and diversification from launch revenues. The company's vertical integration across manufacturing, launch, satellite deployment, and customer delivery provides cost efficiency advantages.

SpaceX serves as the primary launch provider for NASA and the Department of Defense, providing contract support and demand visibility. The company also monetizes AI compute capacity through third-party arrangements, including recent deals with Anthropic and Google representing approximately $75 billion in total contract value.

Moody's noted constraints including execution and financial risks related to the company's AI infrastructure buildout, which involves high capital intensity and sustained negative free cash flow. The rating also reflects dependence on Starship V3 for long-term scaling across connectivity and AI segments.

As of June 4, Starlink had 12 million subscribers. Moody's projects strong revenue and adjusted EBITDA growth from year-end 2026 to year-end 2028, driven primarily by the Connectivity segment through subscriber expansion and direct-to-cell mobile services.

SpaceX maintained approximately $23.7 billion in cash and marketable securities as of March 31, along with $85.7 billion in net IPO proceeds and full availability under its $5 billion revolving credit facility expiring May 19, 2031. The company has a $20 billion unsecured bridge term loan maturing September 2, 2027, with two three-month extension options.

Moody's applied the Telecommunications Service Providers rating methodology, as the Connectivity segment accounts for the majority of consolidated revenue and earnings.