Google owner Alphabet has just been upgraded to AA+, S&P’s second highest rating level
Google parent Alphabet has been upgraded by Standard and Poor's, with analysts citing strong operating performance and conservative financial policy.
Alphabet now holds a rating of “AA+”, one notch below the rating agency's top level of AAA, which is held only by Microsoft and Johnson & Johnson.
S&P said the rating was a function of Google's dominant position in the online search market, with mobile search and video advertising in particular forecast to go “from strength to strength”.
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“The ratings upgrade reflects Alphabet's consistently strong operating performance, despite a challenging and evolving digital advertising market, while it continues to maintain a conservative financial policy and strong liquidity profile” S&P analyst David Tsui said.
S&P said it expects the tech giant's revenues to climb in mid-teen percentages in both 2017 and 2018.