--- title: S&P downgrades Oracle to BBB- – only one notch above... description: S&P Global has downgraded Oracle's credit rating from BBB to BBB-, placing it just one notch above junk status. The downgrade is driven by Oracle's massive AI... canonical: https://daily.dev/posts/s-p-downgrades-oracle-to-bbb--only-one-notch-above-junk-level-rfwkl4slw twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: S&P downgrades Oracle to BBB- – only one notch above junk level | daily.dev og:description: S&P Global has downgraded Oracle's credit rating from BBB to BBB-, placing it just one notch above junk status. The downgrade is driven by Oracle's massive AI... og:url: https://daily.dev/posts/s-p-downgrades-oracle-to-bbb--only-one-notch-above-junk-level-rfwkl4slw og:image: https://api.daily.dev/og/posts/Rfwkl4SlW.png og:image:alt: S&P downgrades Oracle to BBB- – only one notch above junk level 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. # S&P downgrades Oracle to BBB- – only one notch above junk level **[Hacker News](https://daily.dev/sources/hn)** · 3 min read · 0 upvotes · 0 comments ## Summary S&P Global has downgraded Oracle's credit rating from BBB to BBB-, placing it just one notch above junk status. The downgrade is driven by Oracle's massive AI data center expansion, with capital expenditure forecasts rising to $90–95 billion for fiscal year 2027 and a projected free operating cash flow deficit of nearly $42 billion. S&P highlights Oracle's heavy dependence on OpenAI — estimated at roughly half of its $638 billion in contracted but undelivered services — as a central credit risk. Oracle is transforming from a software company into a hyperscaler, but S&P views it as financially weaker than rivals like Microsoft, Google, and Amazon. The company has also cut over 21,000 jobs in the past year to fund AI infrastructure. The situation echoes broader warnings from the Bank for International Settlements about debt-financed AI investments resembling past financial bubbles. ## 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 building yesterday’s data centers with tomorrow’s debt](https://daily.dev/posts/oracle-is-building-yesterday-s-data-centers-with-tomorrow-s-debt-7fhzy8c0m) · Hacker News · 0 upvotes · 0 comments - [Premium: The Hater's Guide to Oracle](https://daily.dev/posts/premium-the-hater-s-guide-to-oracle-qmibgl4xp) · Where's Your Ed At · 17 upvotes · 0 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/s-p-downgrades-oracle-to-bbb--only-one-notch-above-junk-level-rfwkl4slw) ```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":"S&P downgrades Oracle to BBB- – only one notch above junk level","url":"https://daily.dev/posts/s-p-downgrades-oracle-to-bbb--only-one-notch-above-junk-level-rfwkl4slw","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/s-p-downgrades-oracle-to-bbb--only-one-notch-above-junk-level-rfwkl4slw"},"datePublished":"2026-07-14T17:51:23.434Z","dateModified":"2026-07-22T13:42:03.650Z","description":"S&P Global has downgraded Oracle's credit rating from BBB to BBB-, placing it just one notch above junk status. 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