Oracle, which is battling Wisconsin regulators over financial requirements for data center customers and is building the Lighthouse data center in Port Washington, saw its credit rating drop to a BBB-, Wisconsin Public Radio reported.
The company is spending money quicker than it can generate revenue, and if it were to drop one more rank it would be considered below investment-grade.
S&P Global Ratings, a national credit rating agency, cut Oracle’s rating on July 9.
Both S&P analysts and Oracle are confident they can improve profitability and raise capital, however.
Oracle is embroiled in a lawsuit after it sued the Public Service Commission of Wisconsin over financial support requirements for data center customers. Utility regulators approved a “very large customer” rate for We Energies that required data center developers in its territory to maintain a credit rating of A- or A3.
The PSC said in a court filing this month that Oracle is trying to avoid oversight.
