The Zhitong Finance App learned that on Monday, Oracle (ORCL.US) fell more than 4% in the premarket to $125.14. According to the news, on November 2, Moody's confirmed Oracle's “Baa2” senior unsecured debt rating and “P-2” commercial paper rating, and gave the company a “Baa2” rating on the $10 billion senior unsecured notes it plans to issue. The outlook remains negative. Oracle launched a $10 billion dollar bond offering on Monday, and just a few days ago, the company announced a new capital expenditure plan to fund its artificial intelligence (AI) infrastructure investments.

The company anticipates that related debt and equity financing plus existing cash will be sufficient to support the construction to achieve self-financing until FY2029. Moody's predicts that the total scale of Oracle's AI infrastructure projects (including chip costs and leased facilities) may exceed $500 billion. The company's free cash flow for the past 12 months ending August 31, 2026 was negative $35 billion, and adjusted debt/EBITDA more than quadrupled.

Moody's said that the negative outlook reflects huge expenses for AI infrastructure construction, uncertainty about financing, and dependence on OpenAI, the largest AI infrastructure customer.

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