S&P downgrades Oracle to BBB- – only one notch above junk level
Summary
S&P Global downgraded Oracle from BBB to BBB- due to what it calls massive AI investments and rising debt. The article notes Oracle's shift toward a hyperscaler model, its dependence on AI data center expansion, and potential cash flow risks, though the outlook remains stable. It also highlights OpenAI as a central risk and places Oracle's moves in the broader context of AI-driven corporate spending.