S&P affirms Nvidia rating at AA on Ohio campus guarantee

S&P Global Ratings has maintained Nvidia Corp.'s AA credit rating, following the tech giant's pledge to provide a $105 billion residual value guarantee for an AI infrastructure campus in Portsmouth, Ohio. The agreement, which will come into effect once each of the nine buildings reaches ready-to-service conditions, is set to be a significant financial commitment for SB Energy, the owner of the data center campus.

The guarantee, which will be spread across the nine buildings, will have a substantial impact on Nvidia's debt obligations. S&P Global Ratings anticipates a debt adjustment of $4.2 billion in 2028, rising to approximately $37.7 billion by 2031. This projection is calculated based on the difference between the guaranteed minimum value and the assessed property recovery value, using commercial real estate methodology and a 21% corporate tax rate.

Nvidia's current financial position, as of April 26, 2026, includes $106 billion in cash and marketable securities, against $33.5 billion of funded debt. With the addition of a $25 billion debt raise in June, the company is projected to generate over $800 billion in free operating cash flow over the next three fiscal years (2027-2029), with EBITDA expected to reach $271 billion, $371 billion, and $491 billion respectively.

Despite this substantial financial commitment, S&P Global Ratings has affirmed a stable outlook on Nvidia, citing the company's sustainable competitive advantage in the AI infrastructure ecosystem. The firm has set the downgrade threshold for the rating at adjusted leverage exceeding 1.5x.