S&P Global Ratings on Thursday changed the outlook on SoftBank Group (TYO:9984) to stable from negative while maintaining its BB long-term issuer credit rating.
The company saw a significant turnaround in its listed assets and loan-to-value ratios to above 60% and about 20% and 25%, respectively, after an increase in Arm Holdings' stock price, S&P said.
Arm's shares make up more than 40% of the group's invested assets, S&P said.
The rating agency expects the company's investment assets to maintain attributes and financial ability within its ratings' limits even with continued volatility in Arm's price.
Investment concentration in large recipients limits the group's creditworthiness, although a bigger share in OpenAI could narrow concentration risk, the rating agency said.
The company will maintain its aggressive stance on AI investments that range from acquisitions to equity stakes and data center projects, S&P said.