Oracle bones suffer downgrade by Standard & Poor's, credit rating just one step away from "junk level".

On Thursday, Eastern Time, S&P Global Ratings downgraded Oracle's long-term issuer credit rating from "BBB" to "BBB-", just one level above speculative grade. S&P noted that Oracle's large-scale transformation towards AI infrastructure poses structural risks, with its projected capital expenditure for fiscal year 2027 at $90 billion to $95 billion and free operating cash flow deficits potentially reaching $42 billion.