SoftBank says leverage not a problem, but Moody’s, S&P not convinced

Tokyo: Masayoshi Son’s appeal to investors and analysts that SoftBank Group Corp. doesn’t have a debt problem hasn’t convinced the firms that assess its bonds as junk.

While Son has won some converts among the analyst community, SoftBank’s debt-fueled growth strategy is preventing S&P Global Ratings and Moody’s Investors Service from upgrading the company to investment grade, according to analysts at both rating companies. A downgrade to SoftBank’s ratings, now one level below investment grade, is more likely than an upgrade, both say.

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