Experimental feature

Listen to this article

00:00
00:00
Experimental feature

Alphabet was upgraded one notch to double-A plus by credit rating agency S&P Global on Wednesday, putting the owner of the Google search engine and Android operating system a single notch below the highest triple-A opinion.

Analysts with S&P said the move reflected the company’s dominance in both desktop and mobile phone advertising markets and its conservative financial strategies. S&P maintained a stable outlook on the company.

“The ratings upgrade reflects Alphabet’s consistently strong operating performance, despite a challenging and evolving digital advertising market, while it continues to maintain a conservative financial policy and strong liquidity profile,” said David Tsui, an analyst with S&P.

Alphabet is an infrequent borrower in corporate debt markets, with long-term debt of roughly $4bn on its balance sheet.

The pristine triple-A rating has become something of an endangered species after the financial crisis, with only two publicly traded US companies holding the highest rating from S&P: Microsoft and Johnson & Johnson. US oil group ExxonMobil was stripped of its long-held triple-A rating last year.

Get alerts on Alphabet Inc when a new story is published

Copyright The Financial Times Limited 2020. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article