S&P Global Ratings raised Snap Inc.’s issuer credit rating to ‘BB-’ from ‘B+’. The agency also upgraded its issue-level ratings on the company’s unsecured notes to ‘BB-’ and maintained a positive outlook.
Snap’s adjusted gross leverage fell to approximately 4.7x for the twelve months ending March 31, 2026. This figure represents a decline from 6.7x in the prior year. Free operating cash flow to debt increased to 16.2%. This metric previously stood at 8.5%.
S&P anticipates revenue growth of approximately 10% in 2026. An expansion in small and medium-sized business advertisers and growth in subscription services will drive this increase.
The positive outlook suggests the potential for another upgrade. Future rating improvements depend on continued revenue growth and the success of cost-saving measures.