US Stock Market Move | Oracle Corporation (ORCL.US) falls over 4% in premarket trading; Moody's Corporation affirms its Baa2 debt rating and maintains a negative outlook.
On Monday, Oracle Corporation (ORCL.US) fell over 4% in premarket trading to $125.14.
On Monday, Oracle Corporation (ORCL.US) fell over 4% in premarket trading to $125.14. On the news front, on November 2, Moody's Corporation affirmed Oracle Corporation's "Baa2" senior unsecured debt rating and "P-2" commercial paper rating, and assigned a "Baa2" rating to the company's proposed $10 billion senior unsecured notes, maintaining a negative outlook. On Monday, Oracle Corporation launched a $10 billion U.S. dollar bond offering, just days after the company announced a new capital expenditure plan to fund its artificial intelligence (AI) infrastructure investments.
The company expects that the related debt and equity financing, together with existing cash, will be sufficient to support construction until it becomes self-funding in fiscal 2029. Moody's Corporation expects that Oracle Corporation's total AI infrastructure project scale (including chip costs and leased facilities) could exceed $500 billion. The company's free cash flow for the trailing twelve months ended August 31, 2026 was negative $35 billion, with adjusted debt/EBITDA exceeding 4x.
Moody's Corporation said the negative outlook reflects the massive spending on AI infrastructure construction, financing uncertainty, and reliance on OpenAI, its largest AI infrastructure customer.
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