Oracle Corp.’s 5-year credit default swaps climbed to about 203 basis points on July 24, setting a record high and signaling sharper concern over the company’s credit profile. At that level, default protection on $10 million of debt would cost roughly $203,000 a year. According to the source material, Oracle’s CDS has risen more than fourfold since mid-2025 and has moved above its peak during the 2008 financial crisis. Borrowing costs are also moving higher. The spread on Oracle’s 6.7% bond due 2056 widened by 8 basis points on Monday to 263 basis points, while the spread on its 5.7% bond due 2036 widened by 9 basis points to 205 basis points. Separately, S&P Global Ratings downgraded Oracle to BBB- on July 9, just one notch above junk status, citing the company’s rapidly growing AI-related spending. The report said Oracle’s credit risk has now reached crisis levels.
Oracle Corp.’s 5-year credit default swaps (CDS) rose to about 203 basis points on July 24, a record high.
At that level, buying default protection on $10 million of Oracle debt would cost about $203,000 a year. According to BlockBeats, Oracle’s CDS has increased more than fourfold since mid-2025 and has even moved above the peak seen during the 2008 financial crisis.
Oracle’s borrowing costs were also higher. The spread on its 6.7% bond due 2056 widened by 8 basis points on Monday to 263 basis points. The spread on its 5.7% bond due 2036 widened by 9 basis points to 205 basis points.
Separately, S&P Global Ratings downgraded Oracle to BBB- on July 9, leaving it one notch above junk status. The source said the downgrade was tied to the company’s rapidly growing AI-related spending. Oracle’s credit risk has reached crisis levels, according to the report.
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