--- title: Oracle is one notch above junk after S&P downgrade as AI... description: S&P downgraded Oracle to BBB-, one notch above junk status, as its $250 billion AI data-centre expansion plan burns cash at an alarming rate. Oracle's free... canonical: https://daily.dev/posts/oracle-is-one-notch-above-junk-after-s-p-downgrade-as-ai-data-centre-spending-burns-through-cash-68rtmolkb twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Oracle is one notch above junk after S&P downgrade as AI data-centre spending burns through cash | daily.dev og:description: S&P downgraded Oracle to BBB-, one notch above junk status, as its $250 billion AI data-centre expansion plan burns cash at an alarming rate. Oracle's free... og:url: https://daily.dev/posts/oracle-is-one-notch-above-junk-after-s-p-downgrade-as-ai-data-centre-spending-burns-through-cash-68rtmolkb og:image: https://api.daily.dev/og/posts/68rTmolkb.png og:image:alt: Oracle is one notch above junk after S&P downgrade as AI data-centre spending burns through cash og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Oracle is one notch above junk after S&P downgrade as AI data-centre spending burns through cash **[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 0 upvotes · 0 comments ## Summary S&P downgraded Oracle to BBB-, one notch above junk status, as its $250 billion AI data-centre expansion plan burns cash at an alarming rate. Oracle's free cash flow turned deeply negative, with nearly $24 billion burned after capex in its last fiscal year, and S&P estimates the deficit could widen to $42 billion. The company is now the second-largest non-financial debt issuer in the Bloomberg US Corporate Bond Index with $117 billion outstanding. Roughly half of Oracle's contracted future revenue is tied to OpenAI, making the bet highly concentrated. Bond markets are already pricing Oracle's debt closer to junk territory, with ten-year bonds yielding around 6.5%. Oracle is attempting to offset financing pressure by requiring customer prepayments, totaling $75 billion, while its cloud revenue grew 93% last quarter. Moody's has also placed a negative outlook on the company. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [Oracle may slash jobs to keep AI datacenter plans on track](https://daily.dev/posts/oracle-may-slash-jobs-to-keep-ai-datacenter-plans-on-track-amxo8pwey) · The Register · 0 upvotes · 0 comments - [Oracle is spending more on building data centres than it earns in a quarter](https://daily.dev/posts/oracle-is-spending-more-on-building-data-centres-than-it-earns-in-a-quarter-3cb4gvdjf) · The Next Web · 1 upvotes · 0 comments - [Premium: The Hater’s Guide To Oracle \(Part 2\)](https://daily.dev/posts/premium-the-hater-s-guide-to-oracle-part-2--iow3awpce) · Where's Your Ed At · 7 upvotes · 2 comments --- Tags: [#cloud](https://daily.dev/tags/cloud), [#openai](https://daily.dev/tags/openai), [#oracle](https://daily.dev/tags/oracle), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure) [View this post on daily.dev](https://daily.dev/posts/oracle-is-one-notch-above-junk-after-s-p-downgrade-as-ai-data-centre-spending-burns-through-cash-68rtmolkb) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Oracle is one notch above junk after S&P downgrade as AI data-centre spending burns through cash","url":"https://daily.dev/posts/oracle-is-one-notch-above-junk-after-s-p-downgrade-as-ai-data-centre-spending-burns-through-cash-68rtmolkb","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/oracle-is-one-notch-above-junk-after-s-p-downgrade-as-ai-data-centre-spending-burns-through-cash-68rtmolkb"},"datePublished":"2026-07-16T20:21:43.564Z","dateModified":"2026-07-22T13:42:03.650Z","description":"S&P downgraded Oracle to BBB-, one notch above junk status, as its $250 billion AI data-centre expansion plan burns cash at an alarming rate. 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