Oracle's Credit Risk Hits Record High as CDS Spread Climbs to 198.23 bps

ORCL3.23%
According to Bloomberg, Oracle's credit default swap spread hit a record 198.23 basis points this week, reflecting investor concerns over the software company's heavy data center spending and negative free cash flow. S&P Global Ratings downgraded Oracle to BBB-, one notch above junk status. The company plans to spend approximately US$50 billion on capital expenditures in fiscal 2026, backed by a US$553 billion contracted backlog, while also seeking to raise US$45–50 billion through debt and equity financing during calendar 2026.
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