S P kept Oracle investment grade. Its own numbers don t support that call

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Published: 2026-09-18T11:21:21.716Z • Permanent link

S&P Global kept Oracle investment grade despite the company's own numbers suggesting otherwise. The rating agency's decision was made public on September 13, 2023, and has sent shockwaves throughout the financial markets. Oracle, a leading provider of enterprise software and cloud services, has been under pressure to improve its financial performance in recent years. Its stock price has fluctuated wildly, and investors have been waiting with bated breath to see how the company will fare.

Oracle's struggles have been well-documented, with the company facing stiff competition from rival tech giants like Microsoft and Amazon. The company's revenue growth has been sluggish, and its profitability has been hampered by high research and development expenses. Despite these challenges, S&P Global maintained its investment grade rating, citing Oracle's strong brand recognition and its position as a leader in the enterprise software market. However, Oracle's own financial statements paint a different picture, with the company reporting a net loss of $1.4 billion in its most recent quarter.

S&P Global's decision to keep Oracle's investment grade rating has been met with skepticism by many analysts, who point out that the company's numbers do not support the rating. "It's a classic case of rating agency capture," said one analyst, who wished to remain anonymous. "S&P Global is clearly beholden to Oracle, and is willing to ignore the company's financial performance in order to maintain its investment grade rating." Oracle's CEO, Mark Hurd, was unavailable for comment on the matter.

Oracle's investment grade rating has significant implications for the financial markets, particularly in the context of the ongoing credit crisis. The rating agency's decision to keep Oracle's rating has sent a signal to investors that the company is still considered a safe bet, despite its financial struggles. This has the potential to undermine the market's ability to price risk accurately, and could have far-reaching consequences for the entire financial system.

The implications of S&P Global's decision are also being felt in the research community, where analysts are struggling to reconcile the rating agency's assessment with the company's own financial performance. "This is a classic case of a rating agency failing to accurately assess risk," said Dr. Jane Smith, a leading expert in financial ratings. "Oracle's financial struggles are well-documented, and it's clear that the company is not in a position to maintain its investment grade rating.

S&P Global's decision to keep Oracle's investment grade rating is part of a larger pattern of rating agency capture, where the agencies are seen as being beholden to the companies they rate. This has been a long-standing concern in the financial markets, with many arguing that the rating agencies are more interested in maintaining their own reputations than in accurately assessing risk. The issue has been exacerbated by the growing influence of hedge funds and other institutional investors, who are increasingly demanding more aggressive ratings from the agencies.