By Sam Goldfarb
Publication Date: 2025-11-24 19:15:00
Oracle is there a difficult situation. The company is already burning cash and plans to burn tens of billions more over the next few years as it tries to transform itself from a leading software company into an AI cloud computing giant, leasing out the massive clusters of advanced computer chips needed for applications like OpenAI’s ChatGPT.
Oracle’s bonds are rated two notches above speculative territory and now have yields higher than almost all of its investment-grade technology peers. Jordan Chalfin, senior analyst at research firm CreditSights, said Oracle could issue about $65 billion more in bonds over the next three years.
A small increase in borrowing costs shouldn’t make much of a difference to the company since its interest expenses would still be dwarfed by its capital expenses. But Oracle, Chalfin said, needs to maintain its investment-grade ratings because the amount of funding available to lower-rated companies is simply not enough to…
