Akamai Technologies Inc. faced simultaneous credit downgrades from Moody’s Ratings and S&P Global Ratings after proposing more than $2 billion of convertible debt to finance an aggressive expansion into AI edge infrastructure. S&P lowered Akamai’s issuer credit rating to BB+ from BBB-, moving the company into speculative-grade territory, while Moody’s cut its rating one notch to Baa3, the lowest investment-grade tier; both agencies assigned stable outlooks. The financing comprises $1.1 billion of notes due in 2028 and $1.1 billion due in 2031, with purchasers able to acquire up to an additional $150 million of each series. Akamai plans to use the proceeds partly to address $1.15 billion of 0.375% notes due in 2027, fund payments related to earlier conversions and support capital expenditures for Cloud Infrastructure Services. The downgrades followed a major expansion in Akamai’s cloud commitments, which exceeded $14 billion this year and include a seven-year agreement with AI developer Anthropic valued at up to $11.6 billion. Anthropic is expected to represent roughly a quarter of Akamai’s consolidated revenue at full ramp around 2028, increasing customer concentration and linking deleveraging to the company’s execution and AI compute demand. S&P projects adjusted leverage slightly above 4x in 2027 and a cumulative unadjusted free-operating-cash-flow deficit exceeding $1 billion through 2029, while Moody’s expects pro forma gross leverage to surpass 7x before cash balances. Akamai retains more than $4 billion in cash and liquid investments and an undrawn $1 billion revolving credit line, but the agencies warned that exercising Anthropic’s $9 billion expansion option or adding major contracts without equity financing could prolong pressure on credit metrics. The financing announcement also weighed on Akamai shares, which fell 6.25% to $77.90 in Monday premarket trading, despite stronger third-quarter revenue and adjusted earnings than expected. Third-quarter revenue rose 6% to $1.122 billion, adjusted earnings per diluted share declined 5% year over year to $1.77, Cloud Infrastructure Services revenue increased 34% to $109 million and security revenue rose 9% to $622 million. Delivery and Other Cloud Applications revenue fell 3%, while fourth-quarter revenue and adjusted EPS guidance trailed analyst estimates. Management expects Cloud Infrastructure Services revenue of $1.1 billion to $1.3 billion in 2027 and total revenue above $7 billion in 2028, and said supply-chain and data-center delays had been resolved.