We estimate that Redwood Shores, Calif.-based enterprise software company Oracle Corp. will exceed our downgrade threshold of 2x S&P Global Ratings-adjusted net leverage over the next two quarters as a result of share buybacks that we expect to exceed its discretionary cash flow. We are lowering our issuer credit rating on the company and our issue-level ratings on its unsecured debt to 'A' from 'A+'. We are also lowering our short-term rating to 'A-1' from 'A-1+'. The negative outlook reflects our uncertainty about when Oracle intends to curtail share buybacks so that net leverage stops increasing, and that it could exceed our new downgrade threshold of 2.5x over the next 24 months if it continues buying back shares at the
