S&P Downgrades Oracle to BBB-: One Notch Above Junk Status

S&P downgrades Oracle to BBB – only one notch above junk level

S&P Global has lowered Oracle's credit rating to BBB-, citing massive debt from its $95 billion AI infrastructure push and a critical reliance on OpenAI. This aggressive shift from software to hyperscaler leaves the company with a projected $42 billion deficit and significant exposure if the AI boom stalls.

"If OpenAI were unable to meet its payment obligations, Oracle would be left with long-term data center rental agreements that could neither be easily terminated nor transferred to other customers."