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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting heightened pressure on big tech balance sheets, S&P Global has downgraded Oracle's credit rating to 'BBB-', the final notch above speculative or 'junk' status. The company currently carries a massive debt load of $160 billion, a figure that has triggered analyst concerns regarding long-term financial flexibility. Despite the downgrade, Oracle's stock has remained resilient, shrugging off the immediate negative implications of the credit revision in recent sessions.
This downgrade arrives as Oracle faces intense cloud infrastructure competition from peers like Microsoft and Amazon, with market data showing Microsoft (MSFT) maintaining a robust valuation driven by AI integration. According to research notes from JPMorgan, Oracle's leverage remains among the highest in the software sector, largely due to major acquisitions such as the $28 billion Cerner deal, which significantly increased debt levels relative to free cash flow.
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Sign InFrom a technical perspective, ORCL closed at $144.27 (close July 09, 2026), after navigating a daily range between $140.94 and $149.07. Investors are now watching whether Oracle can translate its AI momentum into sufficient deleveraging, especially as the market awaits macro catalysts such as the U.S. ISM Services PMI, which may provide further insight into the strength of enterprise technology spending.