According to BlockBeats, Oracle Corporation's 5-year credit default swaps surged to a record 203 basis points on July 24. The company's CDS has quadrupled since mid-2025, exceeding peak levels during the 2008 financial crisis, signaling heightened credit risk among investors.
Oracle's borrowing costs are also rising. Its 6.7% bonds due 2056 widened by 8 basis points to 263 basis points on Monday, while its 5.7% bonds due 2036 expanded by 9 basis points to 205 basis points. On July 9, S&P Global downgraded Oracle to BBB-, just one notch above junk status, citing rapid growth in AI-related spending.