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Oracle's Credit Rating Cut to One Notch Above Junk — and OpenAI Is the Reason
Times of India·Thursday, 16 July 2026
S&P Global Ratings downgraded Oracle's credit rating to BBB- from BBB, citing risks tied to its expanding AI infrastructure business. OpenAI accounts for roughly half of Oracle's AI-related revenue, making Oracle vulnerable if OpenAI defaults on its massive data centre leases. S&P warned of further downgrades if Oracle's leverage exceeds 4.5 times.
Why It Matters
Oracle is a major cloud and enterprise software provider used by businesses worldwide, including in India. A weakening credit rating can raise its borrowing costs and affect service stability.
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