Investing.com -- Fitch Ratings assigned a BBB+ rating to Space Exploration Technologies Corp.'s proposed senior unsecured notes. The notes will rank equally with existing and future senior unsecured obligations, including the company's senior unsecured revolving credit facility.

SpaceX plans to use net proceeds from the notes to fully repay its $20 billion bridge loan and cover related fees and expenses. Any remaining funds will go toward general corporate purposes.

The BBB+ issuer default rating reflects SpaceX's leading position in commercial launch, where Fitch says barriers to entry are functionally insurmountable within the rating horizon. The rating also considers rapidly scaling recurring revenue from connectivity and AI compute operations.

Fitch assigned a stable outlook based on expectations that EBITDA growth will keep leverage within or below management's 2x-3x target. The rating agency noted that over $90 billion in pro forma liquidity supports the rating through a period of elective, deeply negative free cash flow.

SpaceX has delivered more than 80% of global mass to orbit since 2023. The company's proprietary rocket reusability has reduced launch costs to a fraction of historical averages, according to Fitch.

Starlink provides recurring revenue from more than 12 million active subscribers as of June 4. The company also receives revenue from enterprise, government, and mobile network operator contracts, along with a rapidly scaling terrestrial AI compute business.

SpaceX raised $85.7 billion in what Fitch described as the largest public offering in history. The rating agency expects the company to defer discretionary capital deployment if access to capital markets were curtailed.

Governance represents a key rating constraint. Elon Musk serves as chairman, CEO and CTO, and controls almost all super-voting shares at a 10-to-1 ratio with no sunset provision. Fitch says this governance structure constrains the rating by two notches relative to the level otherwise supported by SpaceX's operating and financial profile.

Fitch's rating case assumes Starship achieves operational capability in the second half of this year, deploying next-generation Starlink satellites necessary for connectivity growth in 2027 and beyond.