Oracle's Debt Unlikely to Hit Junk Status, UBS Says Amid AI Push

• UBS Group AG predicts Oracle will maintain its investment-grade bond rating despite significant borrowing for AI expansion.
• A downgrade to junk status is considered "quite unlikely" by UBS strategist Matthew Mish, who notes investors have priced in credit risk.
• Oracle sold $18 billion in bonds in September for data-center expansion, fueling speculation about its credit rating.
• The company has approximately $95 billion in outstanding debt, making it a major corporate issuer outside the financial sector.
• Oracle's ability to retain its rating depends on the AI outlook and future borrowing plans, with the company committed to maintaining its high-grade status.

Why It Matters: UBS expects Oracle to retain investment-grade despite AI-driven debt, easing junk status fears.