Oracle credit rating drops amid Wisconsin fight over data center credit rules
S&P Global Ratings downgraded Oracle's credit rating, citing AI infrastructure investments. This comes as Oracle is suing Wisconsin's utility regulator over new credit requirements for data center operators in We Energies territory, which mandate operators pay for new power plant construction.
S&P Global Ratings downgraded Oracle's credit rating from BBB to BBB- on July 9, placing it on the lowest edge of its investment-grade tier. The agency cited uncertainty regarding Oracle's rapidly expanding AI infrastructure business, pointing to high capital spending, an "uncertain path to profitability," and stiff competition as reasons for increased credit risk.
The downgrade coincides with a lawsuit filed by Oracle against Wisconsin's utility regulator, the Public Service Commission (PSC). The tech giant is challenging new credit requirements for data center operators within We Energies' service area.
These recently approved rules require