SoftBank Group is facing its highest credit risk in approximately four years as the company accumulates debt to finance its artificial intelligence strategy. Five-year credit default swap spreads for the conglomerate have risen to a range of 380 to 400 basis points, marking a 24% increase between June and October 2026.
The company has committed $64.6 billion to OpenAI, representing a stake of roughly 13% as of early October 2026. To support this investment, SoftBank issued $11.1 billion in high-yield bonds on September 24, 2026, featuring coupon rates of 8.625%, 9.25%, and 9.75%.
Beyond OpenAI, the firm allocated $5.4 billion to the robotics business of ABB and $3.1 billion to DigitalBridge for data center projects. Following these moves, Fitch assigned a BB+ rating to SoftBank on September 11, 2026, while S&P maintains a negative outlook on the company.
Investor concerns are further compounded by a 38% decline in SoftBank's share price since its peak in June 2026. The company's portfolio remains heavily concentrated in Arm Holdings and OpenAI, with potential future acquisitions adding to the pressure on its financing requirements.
