This article first appeared on GuruFocus. Oracle (ORCL, Financials) is facing increased pressure in the credit market as the cost of insuring its debt jumped to a record high on fears about the huge tab for its AI expansion.The yield on Oracle's 6.7% bonds due 2056 climbed above 8% for the first time on Thursday, according to Seeking Alpha statistics. That is a big move for a company that is rated Baa2 by Moody's and BBB- by S&P, near the bottom of investment grade.The pressure comes as Oracle spends money on the data centers and processing resources needed to compete in artificial intelligence. That development has made the company more reliant on debt financing, making borrowing rates a key aspect of the investing story.
Главную мысль мы показываем публично. Создайте бесплатный аккаунт, чтобы читать статью полностью, сохранять ее, обсуждать и связывать с рынками и OSINT-контекстом.