SoftBank Group's (TYO:9984) significant investments, particularly in unlisted artificial intelligence (AI) firms, will undermine its credit profile, S&P Global Ratings said in a Wednesday release.

The aggressive acquisition strategy, including a substantial stake in OpenAI, will strain the company's financial health if not swiftly mitigated, the rating agency said.

Bridge loans will finance the company's several growth investments, which S&P expects to erode its financial metrics.

Moreover, Softbank's loan-to-value (LTV) ratio exceeding 30% is a potential trigger for a downgrade, especially following recent large-scale investments like Ampere Computing, the rating agency said.

Aside from the LTV ratio, S&P will also track the investments' impact on the company's profitability and portfolio quality.