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S&P Downgrades Oracle to BBB-Minus, Flags $42 B Deficit

8/1/2026

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Summary

Story summary

S&P Ratings cut Oracle’s credit rating to BBB-minus on July 9 2026.
Oracle raised $43 billion in debt and $5 billion in equity in fiscal 2026, bringing borrowings to about $130 billion.
S&P projects a $42 billion cash-flow deficit for Oracle in fiscal 2027.
Oracle signed a $300 billion compute deal with OpenAI.
Oracle’s stock trades 60% below its September 2025 high.

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Story summary

S&P Ratings cut Oracle’s credit rating to BBB-minus on July 9 2026.
Oracle raised $43 billion in debt and $5 billion in equity in fiscal 2026, bringing borrowings to about $130 billion.
S&P projects a $42 billion cash-flow deficit for Oracle in fiscal 2027.
Oracle signed a $300 billion compute deal with OpenAI.
Oracle’s stock trades 60% below its September 2025 high.