Oracle’s Debt ‘Unlikely’ to Trigger Cut to Junk Grade, UBS Says

Oracle Corp. will likely maintain its investment-grade bond rating in the near term despite borrowing tens of billions of dollars to expand its artificial-intelligence push, according to UBS Group AG.

The software company’s rating could be cut one notch to the lowest investment-grade tier, but worries that Oracle may be dropped to junk status are likely overblown, UBS strategist Matthew Mish said in an interview Tuesday. Investors have already priced in much of the credit risk and credit-rating companies will likely be “somewhat patient” with the company, he added, citing discussions with the raters.