The Motley Fool / CNBC / Investing.com · 2026-09-30
Oracle's Long Bonds Yield Above 8% After Force Majeure Notice on Project Jupiter Data-Center Campus; Fallen-Angel Risk Intensifies
Oracle (S&P BBB-, one notch above junk) invoked force majeure to defer payments on its $18B+ Project Jupiter New Mexico data-center campus, sending its 2056 bonds to yields above 8% — levels that price the debt as speculative-grade. With Moody's still at Baa2 and Fitch not yet cutting, a second agency downgrade would trigger forced selling by IG-benchmark funds and push high-yield markets — already absorbing ~$28B in AI infrastructure junk debt in 2026 — to become the marginal financier of Oracle's 664B RPO buildout.
FXStreet (credit desk note, citing Bloomberg index methodology) · 2026-09-30
Oracle Fallen-Angel Analysis: S&P BBB- Plus ~$18B Jupiter Construction Package Trading Below Par Creates Two-Out-of-Three Index-Exclusion Cliff
A same-day credit desk note published on Sept 30 lays out the systemic mechanics: Bloomberg's major IG corporate indices use a two-out-of-three rating rule, so a second agency crossing into BB+ would force passive IG funds to liquidate Oracle bonds while the company still needs external capital to fund its AI buildout — an unprecedented situation where high yield would be asked to finance not existing debt but the next stage of construction. Oracle's stressed construction debt already trades below par, amplifying contagion risk across AI-capex credit.
Micron Technology IR / SEC Form 8-K · 2026-09-30
Micron Reports Record FY2026 Adjusted Free Cash Flow of $62.3B; Board Declares Quarterly Dividend; Credit Upgrades from All Three Agencies to BBB+ Confirmed
Micron's Q4 FY2026 earnings release (filed Sept 30) shows adjusted FCF of $62.3B for the full year and $73.5B in cash/investments, contrasting sharply with Oracle's negative FCF and CoreWeave's junk-rated debt stack. All three major agencies upgraded Micron to BBB+ this fiscal year, reflecting CHIPS Act grant receipts of up to $6.4B and $22B in customer supply agreements that reduced net debt by $4.4B. The strong credit trajectory positions Micron as the AI-capex issuer with the most improved funding profile heading into FY2027's $27B+ capex ramp.