Oracle Bonds Yield 7.8%, Among Highest in Investment Grade After BBB- Cut
Updated
Updated · Seeking Alpha · Jul 17
Oracle Bonds Yield 7.8%, Among Highest in Investment Grade After BBB- Cut
3 articles · Updated · Seeking Alpha · Jul 17
Summary
Oracle’s investment-grade bonds now yield 7.8%, putting them among the highest-yielding names in the category and signaling sharply higher borrowing risk.
S&P cut Oracle to BBB- — one notch above junk — after warning that the company’s huge AI infrastructure push is straining cash flow faster than revenue grows.
That spending plan centers on a roughly $250 billion data-center expansion, while Moody’s has also assigned a negative outlook to the company’s credit.
The jump in yields underscores how Oracle’s AI buildout is pressuring both its debt and equity story, with investors reassessing whether future growth can justify the balance-sheet risk.