Oracle Credit Rating Downgraded to BBB- Amid Concerns Over Free Cash Flow Deficit
S&P Global Ratings downgraded Oracle's credit rating to BBB-, the lowest investment grade level, due to a widening free cash flow deficit and heavy reliance on OpenAI for revenue. This highlights growing concerns about Oracle’s financial stability compared to peers like Microsoft and Amazon who are also investing heavily in AI but with stronger balance sheets.
Tickers: $AMZN $GOOG $MSFT $ORCL
Topics: AI spending bond market reaction debt risk free cash flow deficit