Oracle's Debt Unlikely to Hit Junk Status, UBS Says Amid AI Push

Oracle has about $95 billion of debt outstanding, making it the biggest corporate issuer outside the financial sector in the Bloomberg high-grade index.

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Moneycontrol•07-01-2026, 03:14

Oracle's Debt Unlikely to Hit Junk Status, UBS Says Amid AI Push

•UBS Group AG predicts Oracle will maintain its investment-grade bond rating despite significant borrowing for AI expansion.
•A downgrade to junk status is considered "quite unlikely" by UBS strategist Matthew Mish, who notes investors have priced in credit risk.
•Oracle sold $18 billion in bonds in September for data-center expansion, fueling speculation about its credit rating.
•The company has approximately $95 billion in outstanding debt, making it a major corporate issuer outside the financial sector.
•Oracle's ability to retain its rating depends on the AI outlook and future borrowing plans, with the company committed to maintaining its high-grade status.

Why It Matters: UBS expects Oracle to retain investment-grade despite AI-driven debt, easing junk status fears.

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