S&P Downgrades Oracle's Credit Rating to 'BBB-' Reflecting AI Infrastructure Investment Burden

Standard & Poor's (S&P) has downgraded Oracle's credit rating to 'BBB-', the lowest tier of investment-grade, citing financial strain from expanding AI infrastructure. The downgrade reflects concerns that Oracle's shift toward AI investments is eroding its stable software-centric business model and underestimating the financial impact of large-scale capital expenditures.