Tesla Inches Toward Blue-Chip Status via Moody’s Boost
- The automaker now sits just one step below investment-grade
- Debt could be lifted out of high yield within 18 months: BI
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Moody’s Investors Service Inc.’s move to ramp up Tesla Inc.’s credit rating to the cusp of investment grade is bolstering expectations that the famous electric vehicle maker will secure blue-chip status as soon as early next year.
The agency boosted Tesla by two notches to the highest junk rating of Ba1 on Monday, citing improving profitability and business-scale prospects. Bloomberg Intelligence credit analyst Joel Levington projects Tesla will now enter the big league of high-grade issuers within 12 to 18 months.