Oracle Credit Risk Measure Hits Record High on AI-Debt Fears
Oracle signage on the exhibition floor at the Nvidia GTC conference in San Jose, California on March 17.
Photographer: David Paul Morris/BloombergA gauge of Oracle Corp.’s credit risk closed at an all-time high Friday, the latest sign that investors are growing increasingly wary about the technology giant’s heavy debt load amid rising oil prices and falling stock prices.
The cost of protecting the company’s debt against default for five years rose 0.072 percentage point, or 7.2 basis points, to 198.18 basis points, according to ICE Data Services. That’s the highest closing level on record, exceeding the previous peak reached in December 2008.