Oracle rating downgraded by S&P, now stands one notch above junk; reason is Sam Altman
S&P Global Ratings downgraded Oracle's credit rating to BBB- from BBB, citing risks linked to its AI infrastructure business. The agency highlighted OpenAI's heavy reliance on Oracle's services as a significant credit risk, especially if OpenAI defaults on its obligations. Oracle could face financial strain from substantial data center leases, and S&P warned of potential further downgrades if leverage surpasses 4.5x.