- Oracle's five-year credit default swap spread stood at 295 basis points, after briefly hitting 300 bps Thursday and rising 287% in one year.
- S&P rates Oracle BBB-, the lowest investment-grade level, after downgrading it in July on rising credit risk from its infrastructure business.
- Analysts estimate Oracle free cash flow of -$23.7 billion this year and -$36 billion in 2027.
- Deutsche Bank warns that a downgrade to junk would pressure IG-only investors into forced sales.
Quotes
“Nobody in high yield is going to buy a 30 year debt”
“would risk pressuring IG-only investors into forced sales”