Business & Finance

Oracle's debt insurance costs climb near junk territory as AI sentiment cools

CNBC reports Oracle, rated BBB-, has issued $118 billion in long-term debt as the cost of insuring its debt rises.

Updated Oct 19, 2026 · 11:57 UTC1 reports

The short version

Oracle's five-year credit default swap spread is 295 basis points, up 287% in one year.[CNBC]
Oracle holds a BBB- rating from S&P Credit Ratings, the lowest investment-grade level, after a July downgrade.[CNBC]
Oracle has issued $118 billion in long-term debt, per FactSet data, to fund its data center buildout.[CNBC]
Oracle says investment-grade status is its first priority, while analysts forecast negative free cash flow through 2027.[CNBC]

Oracle's five-year credit default swap spread is 295 basis points, after briefly hitting 300 basis points on Thursday and rising 287% in one year.[CNBC]
Oracle's rating with S&P Credit Ratings is BBB-, the lowest investment-grade level, after the agency downgraded Oracle in July.[CNBC]
Oracle has issued $118 billion in long-term debt and has $39 billion in capital and lease obligations, according to FactSet data.[CNBC]
Consensus analyst forecasts put Oracle's free cash flow at -$23.7 billion this year and -$36 billion in 2027.[CNBC]
Oracle told CNBC in response to a request for comment that maintaining an investment-grade rating is its first priority.[CNBC]

A downgrade of Oracle to junk status is a hypothetical risk described by analysts; no such downgrade is reported.[CNBC]
Free cash flow figures are consensus analyst estimates, not reported results.[CNBC]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.