S&P kept Oracle investment grade. Its own numbers don’t support that call.

Would you believe me if I told you that debt investors will not change their viewpoint of a company who over the next few years is expected to increase revenue by 240%, debt by 410%, and barely generate a positive cash profit? Would you feel more confident if I told you this company is changing its business by heavily investing in technology that has not yet produced an adequate return on investment? Me neither. Welcome to the current state of the AI thesis and the ratings decision provided by S&P Global Ratings (S&P) on Oracle. But first, a little background. The Big Three rating agencies (e.g., S&P, Moody's Ratings, and Fitch Ratings) assign credit ratings to organizations. Investors use these ratings to set firms' borrowing costs.