Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative - S&P Global Ratings’ Credit Research

Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative

Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative - S&P Global Ratings’ Credit Research
Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative
Published Jun 08, 2022
8 pages (3268 words) — Published Jun 08, 2022
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On June 7, Austin, Texas-based enterprise software provider Oracle Corp. announced that a majority of the outstanding Cerner shares were validly tendered, and the other conditions to the tender offer have been satisfied or waived. We lowered our issuer credit ratings on the company and its debt to 'BBB' from 'BBB+'. We also affirmed our 'A-2' short-term rating. The ratings remain on CreditWatch with negative implications pending financial policy guidance from the company. If the company defers debt issuance and financial policy guidance beyond its upcoming open window, we will likely resolve the CreditWatch listing based on our analytical judgement. Based on the 12 months ended Feb. 28, 2022, Oracle's leverage pro forma for the Cerner acquisition would be 5x

  
Brief Excerpt:

...- On June 7, Austin, Texas-based enterprise software provider Oracle Corp. announced that a majority of the outstanding Cerner shares were validly tendered, and the other conditions to the tender offer have been satisfied or waived. - We lowered our issuer credit ratings on the company and its debt to '###' from '###+'. - We also affirmed our 'A-2' short-term rating. - The ratings remain on CreditWatch with negative implications pending financial policy guidance from the company. If the company defers debt issuance and financial policy guidance beyond its upcoming open window, we will likely resolve the CreditWatch listing based on our analytical judgement....

  
Report Type:

Research Update

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. "Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative" Jun 08, 2022. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Oracle-Corp-Rating-Lowered-To-BBB-On-Cerner-Acquisition-Rating-Remains-On-CreditWatch-Negative-2850945>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Oracle Corp. Rating Lowered To 'BBB' On Cerner Acquisition; Rating Remains On CreditWatch Negative Jun 08, 2022. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Oracle-Corp-Rating-Lowered-To-BBB-On-Cerner-Acquisition-Rating-Remains-On-CreditWatch-Negative-2850945>
  
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