Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative - S&P Global Ratings’ Credit Research

Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative

Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative - S&P Global Ratings’ Credit Research
Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative
Published Mar 30, 2020
3 pages (1371 words) — Published Mar 30, 2020
Price US$ 150.00  |  Buy this Report Now

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Abstract:

SAN FRANCISCO (S&P Global Ratings) March 30, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to Redwood Shores, Calif.-based enterprise software company Oracle Corp.'s proposed unsecured notes. This is the same as our 'A+' issuer credit rating on the company because there are no significant elements of subordination risk in Oracle's capital structure. If Oracle uses the proceeds to increase the pace of share buybacks from the $4 billion of last quarter, leverage could cross our 2x downgrade threshold in the next two or three quarters. In that case, we would likely lower the issuer credit rating and the issue-level ratings on Oracle's debt to 'A', and the short-term rating to 'A-1' from 'A-1+'. Oracle finished its third fiscal

  
Brief Excerpt:

...March 30, 2020 SAN FRANCISCO (S&P Global Ratings) March 30, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to Redwood Shores, Calif.-based enterprise software company Oracle Corp.'s proposed unsecured notes. This is the same as our 'A+' issuer credit rating on the company because there are no significant elements of subordination risk in Oracle's capital structure. If Oracle uses the proceeds to increase the pace of share buybacks from the $4 billion of last quarter, leverage could cross our 2x downgrade threshold in the next two or three quarters. In that case, we would likely lower the issuer credit rating and the issue-level ratings on Oracle's debt to 'A', and the short-term rating to 'A-1' from 'A-1+'. Oracle finished its third fiscal quarter on Feb. 29, with leverage around 1.7x, up from 0x as of fiscal year ended May 31, 2018, scaling up share buybacks following U.S. tax reform in late 2017. Quarterly share repurchases peaked at $10 billion in fiscal 2018 and...

  
Report Type:

Ratings Action

Ticker
ORCL
Issuer
Oracle Corp.
GICS
Systems Software (45103020)
Sector
Global Issuers , Public Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative" Mar 30, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Oracle-Corp-Notes-Rated-A-A-Issuer-Rating-Unchanged-Outlook-Negative-2403617>
  
APA:
S&P Global Ratings’ Credit Research. (). Oracle Corp. Notes Rated 'A+'; 'A+' Issuer Rating Unchanged; Outlook Negative Mar 30, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Oracle-Corp-Notes-Rated-A-A-Issuer-Rating-Unchanged-Outlook-Negative-2403617>
  
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