S&P: Oracle unaffected

Standard & Poor's said the ratings on Oracle Corp. (A/stable/A-1) are not affected by the company's agreement to buy unrated BEA Systems Inc. valued at about $7.85 billion.

S&P said it expects the merger to strengthen Oracle's market position in business process software applications and that the company has sufficient financial flexibility to fund the acquisition with cash on hand and available sources of liquidity without materially weakening its financial profile.

Oracle's total debt-to-EBITDA ratio fell to about 1 times from peak levels of about 2 times. If BEA is financed solely with debt, the company's pro forma debt-to-EBITDA ratio is expected to be less than 2 times, the agency said.

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